Green shoots of an economic recovery have raised UK consumer confidence to the highest level in 2 years, despite enquiries for debt management increasing.
A European Commission index of consumer optimism leaped to its highest level since January 2008.
The report produced by GfK NOP showed that consumers thought this was the best time to make a ‘major purchase’ since November 2007 and was boosted by news that America had finally risen out of recession.
However, at the same time enquiries for debt advice had risen too by almost 40 per cent over a similar period, as the fallout from the credit crunch and recession claim more victims.
The research by debt management company Chiltern found that over two years since November 2007, the number of customers entering debt management programmes had increased by 38 per cent when compared month on month.
Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “Yes, for many people there does seem to be a light on the horizon, however for many people the current climate has placed finances undre undue strain.
“As a rsesult of this, the number of people who have developed debt problems and who are now seeking advice regarding their debt management has risen dramatically.”
Whilst consumer confidence may be up, according to the Institute of International Finance, the current world rebound could easily start losing momentum next year.
A report by this association of global banks, said: “Up until now, the massive support from monetary, fiscal and quasi-fiscal policies has been critical to turning the global economy.”
The interest will be in how the economy and consumer confidence is affected once the government switches off its funding.
