Quick links to latest articles:

Recovery `hampered by high household debt`

By Joel Stanier - Financial specialist

2 June2009

The International Monetary Fund (IMF) has warned that Britain`s economic recovery is being slowed by high levels of household debt.

As The Times reports, the IMF has praised the `aggressive` action which the Government has taken to address the crisis. It stated that `the pace of the slump` seems to be easing - but that recovery will occur only gradually, as the economy is still vulnerable.

It warned that the recovery was being hampered by the high levels of household debt.

"Faced with falling house prices, significant reductions in the value of pensions and other assets, a deteriorating and uncertain employment outlook, consumers are likely to retrench spending to reduce debt and rebuild savings," it stated.

It also urged the Government to take steps to cut its own debt more rapidly, suggesting that spending cuts were `more durable` than tax rises when it comes to reducing public borrowing.

---

Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

Your Situation

Your Details

Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.
Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

Tags: IMF, debt, household debt, personal debt, pensions, tax, aggressive reason, personal debt, cut debt, government, government debt, employment, value of pensions, pension

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.