The unemployment rates in the UK may go some way in helping change people’s attitudes towards their finances and the possibility of entering into debt.
This is the opinion of Charles Davis from the Centre for Economics and Business Research, who observed that, although the rise in these levels has eased over the last few months, the threat of joblessness may make Britons “more cautious” when it comes to their money.
He suggested that these trends could increase the desire to save funds and decrease the compulsion to consume and spend.
Mr Davis added that the lack of growth currently being seen in the UK compared to other countries is partly down to the fact that the financial crisis in Britain was “particularly severe”.
His comments come in response to statistics from the Organisation for Economic Cooperation and Development, which revealed that the UK’s economy shrank between July and September, although other leading economies expanded.
By Sarah Adie