With the recent news that the UK economy is picking up as lockdown restrictions ease, we thought that we would look into the UK debt statistics and see exactly where the impact of the past year has been realised.
Last year we were faced with the prospect of the worst recession in the last 300 years due to the impact of Covid and Brexit on the economy. Whilst official figures show that the UK economy shrank by 1.5% in the first quarter of 2021, it has since gathered speed as lockdown restrictions have continued to ease.
This all sounds promising, but we must remember that the UK economy is still 8.7% smaller than it was pre-Covid. Add into the equation the fact that the Government support such as furlough is due to end this Autumn, plus potential interest rates hikes and things could start looking less optimistic.
The Money Charity has released statistics on last month’s financial situation in the UK and the figures are really interesting.
If the past year has had a negative impact on your financial situation, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.