Eurozone Crisis Could Cause Debt Misery for Thousands, Says Payplan

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If Greece does exit the euro it could have a profound effect on the UK economy and see further cuts in government spending, more jobs loses, increased mortgage rates and banks cutting back on lending.

(PRWEB UK) 19 June 2012

Despite Greece electing a new government, securing their place in the Eurozone for now, debt advisors,Payplan, are concerned that if their economy does not improve soon the UK could suffer.

Although the pro-bailout New Democracy party won the Greek elections on Sunday, the probability of a Greek exit from the Eurozone over the next 12-18 months remains between 50% and 75% according to Citigroup, a multinational finance provider.

Payplan, the UK’s largest provider of free debt solutions, has expressed their concern at this possibility. They have illustrated the possible outcomes of a Greek exit in an infographic which can be accessed here.

Amongst these possibilities are a new recession and the fall of Greek banking.

If Greece leave the euro, they are likely to default on their debts of €240 billion owed to the EU and the International Monetary Fund (source: Guardian).

Payplan warn that this could have serious repercussions for the UK economy. Any knock-on effect could result in more cuts and increased mortgage rates, at a time when many families are already struggling.

Jason Eaves, a Director at Payplan, said: “If Greece does exit the euro it could have a profound effect on the UK economy and see further cuts in government spending, more jobs loses, increased mortgage rates and banks cutting back on lending. With many families already struggling financially this could be the final straw that pushes them into unmanageable debt. We are estimating that more and more people may be forced to take out loans to pay for essentials.

“Anyone who is worried about debt can contact us on 0800 280 2816 for advice”.

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