Coronavirus could lead to huge increases in personal debt

While most of us are now closely following the news for more information about the new coronavirus which is rapidly spreading across Europe, COVID-19, as the disease has been named, may have just as big of an effect on the nation’s finances as it will on our health; stock markets around the world are already taking a hit due to uncertainty around the virus, amid concerns that this is just the start of the impact we’ll eventually see.

The UK government has a difficult job attempting to balance the health and well-being of the country with our economic security, but as cases in the UK continue to stack up, stricter measures are inevitably going to be taken in order to tackle the virus. UK Chief Medical Officer, Chris Whitty, has already announced that people across the UK suffering from mild cold symptoms or fever will soon be asked to self-isolate for seven days in a recent Cobra press briefing, and nearby countries like Italy are shutting down public places including bars and cinemas. It’s also thought that these measures may be in place for many months, as the virus runs its course throughout the UK.

Giles meadows from states “It doesn’t take a degree in economics to see some of the potential impacts that such changes will have on the UK’s financial situation. First and foremost, the closure of businesses on a large scale, even on a temporary basis, can have huge knock-on effects. Staff may find themselves off work with no pay, particularly in the case of workers still on zero-hour contracts, and revenue loss may even lead to a large number of businesses going bankrupt. This, in turn, could result in large numbers of the UK workforce becoming unemployed at once. Finding a new job at the same time as thousands of other recently laid-off workers is a tough market to be in.

We are well aware of the potential disruption the new coronavirus could cause for ordinary people across the UK, as both national finances and personal finances come under pressure from a common enemy. While people are unable to work if coronavirus spreads across the UK, this will cause financial issues for households across the country,” owner Giles Meadows has stated. Now is the time, unfortunately, to tighten the belt buckles and reduce spending in anticipation of much wider financial volatility over the coming months.

An increase in personal debt caused by job loss and potentially rising inflation can be life-changing for many people, but the key to debt, much like infectious disease epidemics, is getting it under control sooner rather than later. Consulting professional debt advisers and taking out a debt consolidation loan is one way to ensure that personal debts remain manageable even when the odds are stacked against you, particularly if you have trouble keeping on top of monthly payments for your current debts.

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