March 01, 2011
A worryingly large percentage of Brits worry that their final situation will worsen greatly over the next six months, a quarterly survey by R3, the insolvency trade body, has found.
R3 found that over 43% of people believe that their current financial position is massively unstable and will only worsen over the next six months.
The figure marks a 13% increase on the last quarter and, incidentally, just 24% of those surveyed believe that their financial situation will improve in the same period.
"Since we last carried out the survey, people have seen a rise in the cost of living, from the VAT increase; to the rise of fuel and utility costs. This has happened against a backdrop of pay freezes, pay cuts and, in some cases, redundancies, so it is understandable that many are feeling pessimistic about their financial outlook," commented R3 President, Steven Law.
The number of people worried about their current level of debt has increased by 6% in the opening months of 2011, with 45% now greatly concerned about the amount of debt they owe. Credit card debt continues to be the main source of worry, with more than half, 56%, expressing concern.
"In my experience, most people's debts become unmanageable due to a change in circumstance, such as sudden unemployment,” added Mr Law. “This no doubt accounts for the generational split with regards to debt worries. In these uncertain times, 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."
R3’s research found that younger people are more likely to worry about their debts, with those aged 25-34 the most at danger, in contrast to just 20% of those aged 65 and over.
Brits fearing mounting debts have been encouraged to seek independent financial advice. Exploring debt packages on offer in the current climate – such Debt Relief Orders or bankruptcy - could help alleviate any lingering financial fears and the affect such worries can have on daily life.
