Will you return to excessive spending when the recession is over?
As talk of a recovery in the UK economy continues to build many people are now looking to the future with more confidence. However, there is the potential for this confidence to create complacency and a number of consumers and businesses could well return to "excessive spending" before their finances are fully recovered. It is no secret that UK personal debt was at record levels prior to this recession and remains relatively high with money tighter than ever.
As the economy finally moves out of recession, it is vital that we still look to maintain our budgets and live within our means for the foreseeable future. Those who immediately return to the days of borrow and spend may well find themselves in an even worse financial situation despite a recovering economy. Do not be fooled into thinking an increase in economic activity will immediately filter through to your wage packet because it won't and it will take some time for many businesses to get back on their feet.
An improvement in economic activity is encouraging but this needs to be appreciated within the wider picture of a very difficult period of economic activity which has affected all areas of the UK.
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