User:Keithtownley

Debt & The Credit Crunch In The UK.

I’m writing this page as a guide to anyone looking back in the next few years, and hopefully it will act as an historical guide of different people's experiences prior too, during and after the credit crunch and this recession in the UK.

I've worked within the debt solution industry for the last 10 years. During this time I've helped thousands of clients overcome their debt problems, which gives me a unique prospective of people's debt issues throughout the UK.

The Credit Crunch is starting to slowly bite and its fair to say that this is the tip of the iceberg. The actual fallout and effects of this recession are not going to be immediate, in fact the majority of people at this point are just getting into more debt and it will be the financial hangover in next 12 - 18 months which will see the true long term effect on the British Economy.

I first witnessed the signs of this recession brewing in 2005/2006. I noticed a slowdown in the second hand car market, as I was helping clients that owned second hand car businesses, people stopped spending money on expensive cars. In 2006 I saw firsthand signs of the peak and the first falls of the housing market, I was helping clients because they couldn’t sell their houses as quick as they anticipated. Towards the end of 2007 and beginning of 2008 I was advising many private individuals with large buy to let portfolios they simply could not juggle, due to jumps in interest rates and mortgage payments. Over 2008 the majority of both Subprime Mortgage and Secured Loan products were withdrawn from the markets. This had a massive impact on people trying to solve their problems by remortgaging or lending, in fact I had a tenfold increase in mortgage advisors and other professionals in the financial industry seeking my advice to help them.

Over the last 12 months self employed people have experienced the biggest effect of the slowdown, a massive percentage of clients I’ve helped are plumber, carpenters, builders, small business and restaurant owners. The first signs of the second wave are becoming clear at the moment as I’m seeing the effects of overtime being cut and job losses in the private sector kicking in. I would say this is going to be the underlined trend which will be on the increase well in to 2010, with another anticipated increase as I personally think we will see a slaughter of public sector jobs end of 2010 and throughout 2011.

A financial dark cloud has settled over the county. The feel good factor of the last 10 years has disappeared and now in 2009 we are seeing the confidence drain from the UK Economy as every industry is being strangled. The long term extent of this recession and the effects its having on small businesses and individuals is still unclear. What is happening right now is financial history in the making.