Friday 22nd of May 2009
Debt worries may prevent the falling cost of living from translating into increased spending by consumers, an expert has suggested.
Figures from the Office for National Statistics showed the consumer prices index rate of inflation to have continued to slow last month.
However, economist at the centre for economics and business research Charles Davis suggested that although some people will benefit, others will be reluctant to spend because of the overall climate.
"You … have to factor in rising unemployment and uncertainty about the economic outlook," he said.
His comments come after the Insolvency Service revealed that redundancies and debt problems contributed to a record number of people entering into bankruptcy or seeking IVA help in the first quarter of the year.
And consumers who are worried that they could be affected by similar problems can take advantage of IVA advice online, as experts are available to help.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Big spenders may be in need of IVA FAQs
