What does the double-dip recession mean for you?
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Scotland still in recession, what does it mean for me?
With the recent gloomy Office of National Statistics Q2 2012 statistics itís now a fact that we are in the worst double-dip recession in 50 years. The announcement of these statistics on Wednesday, July 25, 2012 has shown that the economy has shrank by 0.7pc in the second quarter Ė far more than the 0.2pc fall expected, as record rainfall, a lost day of production to the Queenís Jubilee and the Eurozone crisis have all affected the UK economy. With this in mind it is very clear that you must stay on top of your finances to avoid being affected by the double-dip recession that is now affecting Scotland.
The figures from the ONS mean that the UK economy is now 0.8 per cent smaller than it was a year ago.
What is a double-dip recession and how does it affect me?
A double-dip recession refers to a recession followed by a period of short-lived recovery, followed by another recession. A double-dip recession places fear on economic recovery, essentially the length of time it will take to get out of a recession.
How will a double dip recession affect me and my finances?
Although the recession may not have an affect on you, the rise in food, petrol and energy mean that everyday living will rise and you could find your financial earnings stretched further to match inflation and living costs. This could be dangerous if youíre already struggling to meet your outgoings.
Itís also been highlighted the deepening troubles in the construction, manufacturing and service sectors, with forecasters predicting unemployment to start to rise again after the Olympic games.
Tips to avoid crippling rising costs
- Outgoings: Try to reduce monthly outgoings. Can you consolidate credit cards, store cards and loans into one payment?
- Energy: Look at your energy bill and settings. Can you have the setting on low and for shorter periods?
- Transport: Can you walk instead of using the car? Save on fuel costs
- Household subscriptions: What ways can you reduce household bills? Can you reduce digital television subscriptions?
- Shop around suppliers: Do your energy, petrol and internet suppliers offer you the best price. Shop around offers and find the best available option.
- Luxury items: Can you buy cheaper products or utilise money saving offers?
- Savings: Do you save? Can you put anything away a month?
How do I deal with debt in recession?
If you find yourself struggling to meet your outgoing bills, donít avoid the debt letters or phone calls - act. Itís much easier to deal with your finances before they get out of hand. If this has gone beyond the point of managing your debt effectively, it would be wise to get advice from a reputable debt advice from firms that deal with trust deeds, sequestration, LILAs and DAS to ensure that you get the best financial advice. There is not a one fits all strategy for debt, it comes down to personal circumstance and the advice you receive should reflect this. Whatís more you should also look to receive qualified debt advice from a trusted qualified source.
If you would like to over your finances with a qualified debt advisor please call Trust Deed Scotland on 0141 221 0999.