Gloomy news for 2009

18 November 2008

Unemployment is expected to rise to around 2.9 million in 2009 as the economy shrinks, according to the CBI (Confederation of British Industry).

Problems in the financial world and a dramatic deterioration of business conditions in the last two months have ‘darkened the economic outlook for 2009 even further’, the CBI warns.

According to the CBI, we can expect a slow recovery throughout 2010, but only after the economy has already shrunk by 1.7% in 2009.

“It’s important for people in debt to find ways of cutting back on the cost of their debts during times like these,” said a Think Money debt expert.

“One way of doing this is to overpay credit card debts. Over time, interest charges can significantly add to the cost of credit card debt, so it’s generally in the borrower’s best interest to pay off these debts as soon as realistically possible.

“Say someone has a £3,000 credit card debt on a card that’s charging 17% per year. If they can afford to pay off an extra £100 today, that’s £17 they won’t be charged in interest over the next 12 months.

“It’s always worth making an effort to pay more than the minimum required payment, but during a long period of economic gloom, it’s particularly important for people in debt to save money wherever possible.”

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