Money problems 'could get worse'

People looking around for the best loan rates available have been warned that the economic situation is likely to get worse before it gets better.

New analysis by the Organisation for Economic Cooperation and Development OECD revealed that economic recovery appears to have almost stopped in the major industrialised economies, with falling household and business confidence affecting both world trade and employment.

Michael Baxter, author of the Blindfolded Masochist, said that the economy is likely to continue to be slow and Brits should prepare themselves for a rough time ahead.

"When one country tries to implement austerity measures, that can work. At the moment it just seems to be a worldwide trend. I think the inevitable consequences of that is it going to be a difficult period ahead, not just for the UK but for much of the world," he explained.

Although he claimed there is a possibility of the UK falling into another recession, he suggested that this is unlikely as output is already very low and so should not fall any further.

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2011-09-16 14:24:35 © Moneyextra.com