Brits ‘must prepare’ for looming recession

Most Brits are not prepared for the impending recession that the country is heading towards, it has been claimed.

Research from money website Fool.co.uk found that many people are still not handling their debt management sufficiently in preparation for the predicted slump in the economy.

Seven out of ten people are left with less than a fifth of their income after deducting household expenses each month, it revealed.

And one in eight people are currently spending more than they earn, it added.

David Kuo, head of personal finance for the website, said: “We have yet to feel the full impact of the economic downturn. Consequently, it is important to tackle our finances head on now before it is too late.”

It is “vital” to cut back on expenses and start putting put money aside immediately, he recommended.

This week, Bank of England governor Mervyn King stated that the UK is on the brink of a recession.

By Jamie Price