Nation Expects Personal Finances to Worsen
A new survey reveals almost forty percent of people believe their finances will worsen over the next six months.
This figure of 43 percent is an increase of 13 percent on last quarter, indicating consumers are expecting the knock of the VAT rise and public spending cuts to hit their budgets.
The research by R3, the insolvency trade body, showed less than a quarter of people believe their financial situation will improve over the same period.
“It is understandable that many are feeling pessimistic about their financial outlook,” said Steven Law, R3 President.
“For many of those of working age there is a real fear that if they do suddenly lose their job they will struggle to keep up with their debt repayments.”
The survey comes after people have experienced the VAT increase, and a rise in fuel and utility costs, against the backdrop of pay freezes and redundancies, and for some the debt from overspending at Christmas.
Those worried about their debt levels has increase by six percent from the last quarter, and credit card debt remains the main source of worry as 56 percent expressed concern over this.
Younger people between the ages of 25-34 are most likely to worry about their debts as 57 percent of this age group admitted, compared to just 20 percent of those 65 years old and over.
Consumer Confidence Falls
The wary nature of the nation, concerning their expectations for the future, has been mirrored in the latest consumer confidence index which showed January experienced a fall following a rise in confidence in December.
The latest study by Nationwide revealed the majority of Brits expect the housing market to remain subdued over the coming months, and overall expectations for the future economic situation looked bleak with less than one in five believing things will improve in the next six months.