Friday 12th of November 2010
Households struggling to meet their financial obligations next year may start asking individual voluntary arrangement questions.
Michael Baxter, editor of InvestmentandBusinessNews.co.uk, said he expects the average home to be in a worse economic situation in 12 months, compared to their current position.
He stated people have already been finding it difficult to balance their finances this year due to the average wage increase not keeping up with the rate of inflation, resulting in households being less well off.
"If you were to strip the public sector wages out of the equation and just look at the private sector, then the lag behind inflation is really very significant," Mr Baxter added.
He observed private sector dwellings had already become significantly worse off and there is good reason to believe this will happen again in 2011, particularly in the public sector.
According to the Genworth Consumer Financial Vulnerability Index, the UK recorded a rise in economic weakness this year, after it had witnessed a period of improvement in 2009.
By Ashley Littley
