It was announced yesterday that the UK was finally out of the recession.

However, according to the CSA (Credit Services Association) the recession is still here and there is definite evidence that it is creating a new era of debt for middle class families.

Typically the “impoverished Middle Class” families have experienced a significant drop in income, have buy to let portfolios which are worth less than the secured loans and are not selling and the cash flow crises has meant they have had to rely on credit cards and loans to keep afloat.

Many of these families are holding on by their finger nails assisted by the low interest rates.  An increase in rates could see many of these families’ flimsy grip on their finances spiral out of control.

Unsurprisingly Credit Action reports that around 1,000 people each day seeking some form of informal debt arrangement and that this is likely to rise.

Unemployment is still a major problem – 2,093 people are now made redundant each day.

If you’re facing difficulties and need help to get back on your financial feet give us a call – 0800 085 1825.