June 13, 2011
Over a third of all Britons believe a deterioration in their finances is inevitable over the next six months, as bills and the threats of going overdrawn continue to mount, research has indicated.
Of those surveyed by trade body R3, some 36% of people said they thought their financial situation would get worse, compared with just 17% who thought it would improve in the near future.
In addition, 12% of people admitted they had fallen behind with bills, while 16% expect to go overdrawn this month. In conclusion, R3 said signs of financial distress are at their highest level for years.
"These figures make for worrying reading,” said R3 president Frances Coulson. “It is clear that many have found themselves in a position whereby they have to go into and often exceed their agreed overdraft in order to keep on top of their bills and debt repayments.
"A sudden change in circumstance such as redundancy tends to trigger insolvency so it is always advisable to put some money aside as a buffer. However, with many effectively experiencing a pay cut as living costs continue to rise, this is not always possible.”
With one in 10 people worried about losing their jobs on top of financial woes, indebted Britons are being advised to seek independent financial advice before it’s too late.
