It’s been almost ten years since the financial crisis sent the economy spiralling downwards, but many households are still facing issues with borrowed money. Research from Citizens Advice estimates that of the 4.5 million people facing problem debt in 2006-08, around 1.5 million of them are still struggling with financial woes.

The recession had a significant impact on the local area; a BBC article, published in the midst of the economic disaster, exclaimed: “recession hits North East hardest”. This claim was further evidenced in a government report, which noted that the decrease in the region’s salaries and wages was the most dramatic in the nation.

Citizens Advice recently underscored the significance borrowing via credit card has upon the continuation of consumers’ long-term debt. This issue is one of many which has been linked to the after effects of the 2008 financial crisis.

Consumer borrowing (debt which excludes mortgages) is currently growing at a rate which exceeds that of the recession, increasing 10% more than that of last year. Whilst this only becomes a problem when people can’t afford to pay their debts, the fact that Citizens Advice helped 1.5 million people across the country with debt issues last year demonstrates that this is an area of concern.

Whilst many people haven’t recovered from the insidious effects of the financial crisis, debt is also affecting a new generation. Last year a debt advice provider highlighted that young people in the North East had one of the highest rates of debt in the country, when excluding student loans.

It’s evident that many of us haven’t managed to bounce back from the impact of ‘08’s recession, particularly across the North East region. If you’re one of the many people struggling with problem debt, you can access our online resources to inform yourself of your options, or can contact Citizens Advice Gateshead to receive free advice tailored to your own situation.