Financial Woes Shown To Be Surging For Brits
Britons are coming under an increasingly heavy financial burden.
Such is the assertion of Mintel, which in a recently-released piece of research, revealed that the numbers of people struggling with their spending is on the rise as the credit crunch continues to make its impact felt. In the firm’s study it was indicated that over a third (39 per cent) of respondents currently believe that although “things are pretty tight” they are just about able to make ends meet, an increase from the 25 per cent recorded in 2006.
Meanwhile, some 51 per cent of those questioned stated believe they are either managing their money with ease or are “comfortably” off. Although this figure accounts for just half of the UK population, it does mark a decrease from the 64 per cent of consumers who felt this way two years ago. However, monetary difficulties appear to be most acutely felt by the four per cent of Britons who state that keeping on top of their financial commitments is “almost impossible”.
Following on from the impact of increases in the cost of living over recent months, it could well be possible that consumers are finding their capacity to keep up with demands for payment coming under strain. This may see their capacity to manage personal loans, credit and store cards, household bills and mortgage repayments come under pressure.
Commenting on the figures, Toby Clark, senior finance analyst for Mintel, said: “The good news is that the vast majority of people can still afford to make ends meet. But there has clearly been a deterioration in people’s perception of their financial situation over the past two years, as rising interest rates and higher living costs have really started to take hold.”
He added: “Rising food and fuel prices combined with higher interest rates means that people are now having to find quite a bit more money each month to maintain their standard of living. And while some are clearly using plastic to cover the rising living costs and mortgage repayments, others are dipping into their savings.”
Mr Clark went on to report that due to the continued increases in the cost of living many Britons are finding that they simply do not have any disposable income left at the end of the month in order to put into a savings scheme.
Pointing to findings from the Office of National Statistics, the firm indicated that the ratio of savings people have as a percentage of their overall income for the first three months of this year stood at just over 1.1 per cent. This, it was stated, was one of the lowest proportions ever recorded.
In addition a significant proportion of Britons are shown to be in debt. At present, it was revealed some 34 per cent of people are in the red via unsecured borrowing but are also without savings. However, it seems younger consumers are particularly likely to be in such a financial predicament, with more than half of those between the ages of 25 to 34 claiming to be simultaneously owing money and lacking any funds to put away for the future. Overall, it was indicated that 46 per cent of adults have some form of unsecured debt outstanding.
For those consumers who are looking to get on to a firm financial footing once more, applying for a debt consolidation loan could be useful. By doing so borrowers may be able to merge numerous spending commitments into a single low-cost monthly repayment. This could see them be left with more disposable income, money which could then be invested into a savings account. This may be especially useful for those struggling with numerous demands for payment after a recent Chiltern study showed that the typical debtor is some 25,388 pounds in the red.
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