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According to Economics Help, the UK public sector debt in 2019 was £1,790.9 billion. This shows that there is a big effect on the UK’s debt on the economy. With the UK debt being a constantly growing concern to the government, you will understand why economic growth has not grown to the expected levels. Generally, the economy is multifaceted, thus it affects many areas associated with it. Learn, below, how UK’s debt affects the economy.
Increased Taxes
One of the major effects of the current UK’s debt is the need for increased taxes to cater for cardinal public services. Healthcare is among the public services that the government has to provide for its citizens, thus making it a necessity to increase the amount of tax revenue. Additionally, with the rate of inequality and the aging population rising in the UK, the need to increase taxes is apparent to meet the ever-increasing needs of affected populations. Certainly, an increase in taxes means that the citizens of the UK will have to give more money to the government, which is not easy for most of them.
High Household Debt
Another major effect of the UK’s debt on the economy is the increase in household debt. As the economy struggles to reach the levels where the government wishes it to be, employment opportunities get scarce. As a result, many households struggle to meet their daily needs. Consequently, they have to get loans to finance their basic needs. The major setback with this is that not many households can handle the high-cost loans that lenders offer. They end up being in debt and having their credit scores going so low that they find it difficult to access financial assistance in the future.
Financial Burden on Low-Income People
The rising UK debt has a huge effect on low-income people. When the economy fails to grow exponentially, the section of the population that suffers the most is the low-income. While the middle class and the rich live their lives normally, the poor find it difficult to keep up with the high standards of living. The financial burden on low-income people is so high that they find it problematic to meet their daily needs. As a result of financial volatility, unemployed people and those getting low earnings struggle to rise the social ladder and enjoy social mobility. It is for this reason that they find it incredibly hard to access lenders who can assist them financially in times of need.
Consider NowLoan
With the state of affairs surrounding the UK’s debt affecting many people negatively, it is a huge sigh of relief to find an institution that can offer financial assistance to needy people. In this regard, NowLoan is a feasible financial partner that UK citizens can benefit from when looking for loans to meet their financial needs. There are various loans that UK citizens can have access to through NowLoan including payday loans, short-term loans, and doorstep loans. The good news with NowLoan is that you can qualify for a loan even if you have a bad credit score. Additionally, you can apply for a loan without a guarantor and get financial assistance fast and secure. All you need is to apply for a loan through NowLoan and you will be connected to potential lenders ready to assist you. Without a doubt, even with the UK debt raising concerns about the economy, you can still meet your financial needs through NowLoan.
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