Borrowers have been offered debt advice by a financial expert.
David Kuo, the head of personal finance at Fool.co.uk, has recommended that people reduce their outgoings in preparation for any events that may occur as a result of the economic slowdown.
He noted that some employers may ask employees to take a pay cut in return for job security in the current climate.
“If that were to happen it means that people will have to rely on less money coming into the house … be prepared to cut back when your company says your pay has been reduced,” he remarked.
Mr Kuo advised that people return to the “old principle” of setting monthly budgets.
Meanwhile, a survey by Nationwide has revealed that the base rate cuts made by the Bank of England may discourage people from saving their money.
Additionally, 48 per cent of those questioned said they feel government policy discourages them from setting cash aside.
By Jamie Price