While a recession would not necessarily be bad news for everyone, it would spell difficult times for those looking to become debt free, one expert has claimed.
David Kuo. Head of personal finance at Fool.co.uk, said that an economic downturn might be welcomed by those looking to get on the property ladder – especially those who have the cash to invest.
However, such a period is likely to be more difficult for people who owe money – for example, via credit card debt.
“Recession brings both opportunities and threats,” claimed Mr Kuo.
“It is a threat to people with huge amounts of debt and an opportunity for people who haven’t got debt and have cash.”
Fool.co.uk says that a recession is a period defined by economists as one in which the gross domestic product of a country falls over two consecutive financial quarters.
By Neil Condron