7 things to expect during economic depression

Here’s what the average person may notice as a result of the latest financial tidings.

08:36 01 May 2013

When the Archbishop announced that the UK is suffering from an economic depression, the results could be varied, with numerous impacts on the populace.

 

Here are a few things you may experience as a result of this new announcement, as well as from the economic depression itself:

 

• Reduced spending—in an effort to weather the economic depression, many households will immediately reduce spending, leaving it mainly for necessities, holidays, and special occasions such as birthdays.

 

• Strict lending—banks suffer a great deal from economic depression because their clientele cannot repay the loans, but then the banks are unable to afford to give other people loans which creates a stagnant housing market. It also may mean people trying to consolidate their debts with a personal loan, or conduct property improvements may be unable to obtain the funding.

 

• Increased savings—one of the benefits banks may be able to expect is an increased attention to savings accounts, which will hopefully assist the banks, though slowly, with regaining stability. Banking stability is a cornerstone of surviving economic depression.

 

• Higher interest rates—are prepared for higher interest rates on any loans you’re repaying, and lower interest rates on savings and investment accounts.

 

• Payday loans—these will be in more demand as people try to avoid unauthorized overdrafts, and try to find ways to cover costs from one payday to the next, even though the interest rates may be exorbitant.

 

• Reusing materials—many people will try to use existing things and remake them into other products that can be of use in an effort to both reduce waste, as well as costs.

 

• Pawn shops—you may want to regularly visit these establishments, you may find some treasures as more people try to make their way through an economic depression by selling of things they no longer need.