A recent report from the Organisation for Economic Co-operation and Development (OECD) could cause people to keep a better eye on their spending, it has been said.

However, some people are still carrying on as though their personal situations are unlikely to change, which could cause debt management difficulties, said David Kuo, director at the Motley Fool.

"We have to accept reality that Britain’s economy is shrinking, credit is harder to come by and consequently people will have to reign in their spending in a very severe sort of way," he continued.

People who have less of a disposable income will not be spending what money they do have on the high street, emphasised Mr Kuo, which will have an impact on the service industry as well.

Furthermore, he reveals that the whole economy will continue to shrink until a level that can be inflated from is reached to start building upon again.

The OECD predicts the rate of unemployment in the UK could reach ten per cent by 2010 and the debt-to-gross domestic product ration could reach 90 per cent by the same year.