One in three optimistic about financial future
The economic meltdown has had a dramatic affect on the nation’s personal finances to the point where only one in three remain optimistic about money matters in the future.
A new report from Spanish bank, Santander, found the financial crisis has had a significant impact on household saving and spending habits. Worryingly, one in three people say they can’t save any money at all.
compare prepaid cardsThe rising cost of living and stagnant economic recovery has left UK households in a state of financial panic. Thousands simply cannot afford to put any money aside as many are living hand-to-mouth.
The report also pointed out that 31% of people are unable to save any money each month.
Paying for bills is another big concern that UK adults have regarding their finances. The average household spends a staggering £666 every month on household bills and this figure is regularly increasing.
A number of people are being forced to take extreme cost-cutting measures in order to make ends meet. Research from Asda Finance shows that a fifth (21%) of UK households are sacrificing on food in order to cover the cost of energy bills.
Some 70% of people are cutting back on luxuries such as clothing and eating out, 18% are even cancelling their sky subscriptions.
Head of financial services at Asda, Kirsty Ward said: “These figures are alarming. British Gas has already announced it’s likely to increase prices this year, with other suppliers set to follow and yet for the average British household energy bills actually need to fall by £39 a month just to make them affordable.”
One way for consumers to save money would be by getting the best deals on their financial products such as credit cards, with rewards on spending or credit cards with long 0% interest on balance transfers.