Tuesday, 15 December 2009

The Cost of Christmas

It is said by some that Christmas has come early this year; well I always think that it’s upon us all too soon as it is. But what’s being referred to are the reports in the media claiming huge discounts in the shops and stores on the high street.

One retail suppliers’ has said that this is definitely to be a Christmas of discounted goods, adding: In this environment, you’d be mad to pay full price for anything. So as the Christmas message of shop while you can spread’s and the Queen practices for her traditional broadcast to her beleaguered and circumvented subjects, Debenhams and what we in Scunthorpe used to call Marks & Sparks have kick started sales early by slashing their prices. It seems that retailers have been forced to take this drastic action and cut their prices as a result of the ongoing financial crisis which has left many struggling to find the money to spend on Christmas.

Christmas Discounts have been applied by many shops in an effort to try and boost spending and stop profits from slumping further. One thing is for sure and that’s it serves as a reminder of how server this recession is.

A recent report has indicated that there is now a higher number of people that are facing bankruptcy in the UK, with a rise of 7 percent in the third quarter of the year compared to the same period last year. The figures come from the Ministry of Justice, and show that 13,653 people had petitioned for bankruptcy in the three months to the end of September.

This number is the second highest since the Ministry of Justice started taking records in 1995. The quarter also saw the number of creditor petitions increase, as well as the number of company winding up petitions, which rose by around 13 percent.

One economist described the figures as ‘a clear taste of things to come’ and he also added: “Individual bankruptcies are poised to surge over the coming months in the face of recession, faster rising unemployment, higher debt levels, very tight credit conditions and more and more people being trapped in negative equity.”

Further increases in bankruptcy levels have been predicted by many industry officials, and it is through that this is because of the ongoing global financial crisis and the expected rise in unemployment figures as the country continues to go through the capitalist recession!

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