Source: Press TV
Over 1,500 British people lose their jobs every day due to the country's £1.4trillion debt in loans and mortgages, which is more than the national output.
According to the personal debt charity Credit Action, Britain's debt rose by £1.5billion in 2011, which caused 1,589 redundancies every day and 833,000 unemployed for a year or more. This means the country now owe more than the total national production.
Una Farrell, of the Consumer Credit Counselling Service, said: “I fear that it is only going to get worse as household budgets are subject to inflation, welfare benefit changes, likely interest rate rises and redundancy. This pain will not be felt evenly. Certain groups are likely to be squeezed more than others such as low and middle income earners and pensioners.”
There have been over 300 people declaring bankruptcy every day since the last quarter of 2009 and over 1,000 people seeking debt rescheduling. There also have been over 80 property repossessions every day.
Jo Davies, Credit Action spokesperson, brought up concerns over the 'tricky year' ahead. She believes as the cost of living is increasing due to the inflation, the spending cuts affect families' budgets severely.
Food prices have also been rising unreasonably rapid that it has forced the government to take action against grocers. According to Swiss bank UBS economists, the government needs to put pressure on supermarkets or food producers for the high food prices can make severe problems in the country.
Davies said: “Given that we know there are going to be many tax and benefit changes coming in this year it's going to be a combination of many different things that have an impact. Finding yourself worse off and having less money at the end of each month is going to be very problematic for people and they could find they have problems dealing with credit commitments.”