It’s a worrying scenario and one that is unlikely to be resolved soon. On top of an already unstable financial climate, job losses are still rife and unemployment figures remain at an all time high. The lack of employment opportunities in the UK has certainly hit the news a lot of late; it is estimated that for every job opening an average of 40 individuals will submit an application; and that’s a lot of competition to contend with. Self-employed individuals are also finding the current financial climate tough – customers are thin on the ground and this can mean that many trained labourers have to spend more money to market their services more aggressively.

So, what can we expect in the future for the UK? Certainly a quick fix solution is not on the horizon, but it’s not all doom and gloom. The government are looking at ways of investing into local businesses to help boost the economy and create new job openings, but naturally this process will take a little time. For those people who are lucky enough to be in full time employment the advice would seem clear; stay where you are and ride out the storm. Positive signs are beginning to filter though, perhaps making the future look a little brighter for anyone living in the UK.

Another interesting finding is the apparent abuse and misuse of short term loans by some Brits.  Those who are struggling with their credit obligations have failed to take the straight route in the use of short term loans. Most of them have availed of short term loans for the wrong reasons. This credit option, which should have been used in times of extreme financial exigencies, has been availed of by some Brits for non-essential things. The proponents of the industry survey cite this as the main reason why 8 out of 10 of the respondents were found to be experiencing serious debt problems. Of the respondents that are having serious debt problems, nearly 70 percent earn a monthly income which is below £250 and another 15 percent have monthly income which is below £500.

Majority of the respondents who have gotten themselves in serious debt are those who have lesser control of their spending tendencies. These are usually the individuals who are known shopaholics. There are some Brits who easily give in to the appeal of getting easy cash through short term loans. This is what they usually take out when they are caught up with the bargain fever or stung by the sales bug.

They start getting payday loans to buy the latest home décor or electronic gadget. Worse, there were several respondents in the survey who used the loan to purchase a new car! And this is where they start getting into serious trouble with their creditors. The industry study has shown that the pervading debt problem among the low income groups is mainly due to the wanton recklessness in the use of short term loans, and their reckless spending behavior is the main reason why many find themselves in serious debt.