Tuesday 16th of June 2009
Consumers are likely to continue feeling the effects of the recession even after the economy begins to recover, it has been argued.
The Trades Union Congress (TUC) warned that unemployment is set to go on rising until the autumn of 2010 at the least.
It could mean that a growing number of Britons struggle to repay what they owe due to a loss of income, but those who find employment may be able to reduce their debt by entering into an individual voluntary arrangement (IVA).
Brendan Barber, general secretary of the TUC, called on the government to make tackling unemployment a priority in order to help consumers.
"Getting people back into work and into jobs with decent pay will not only benefit the two million people currently out of work, but will also give the economy the spending boost it needs," he said.
Credit Action director Chris Tapp recently noted that the number of people suffering from debt problems is continuing to rise, something that may be helped by an IVA.
- 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
- IVA answers could help debt-ridden individuals generate emergency funds
