More people determined to pay off debts |
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Fri, 06 May 2005 16:05
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Now that Labour are elected, among the many issues they have to address, is the dropping level of financial confidence among Britons. An independent survey ‘Consumer Barometer2’, conducted by More Than, has revealed that one Briton in every four is unconfident about their current financial position. Mortgages, other loans and credit card balances have slowed down spending on the High Street. And according to More Than’s numbers the trend is very likely to continue during the next six months.
Besides reflecting a negative image of the nation’s economy, the mood of consumers also raises questions about the leaders’ fiscal policy.
| More Than’s findings also show that more people (27%) are determined to pay off their debts, at least until before Christmas, than those (only 12%) who were ready to spend big regardless of how much they could save. The latter category features more women (11%) than men (9%) who admitted to spending and overshooting household budgets.
There was also a gender-wise difference in the level of confidence about one’s current financial situation. 17% men showed financial confidence whereas only 12% women said they were very confident. That could explain the corresponding pattern in Britons who are planning a major purchase: men 13%, women 10%. But when it comes to paying off debts, women appear to be more determined: men 25%, women 28%.
Younger people showed a marked maturity of attitude regarding their finances. In the age group of 16 to 24, more than 30% said they were focused on saving unlike the typical extravagance that you normally expect from them.
Graham Hollebon, head of personal finance at More Than, feels the overall results show a growing sensitivity to the potential for one’s personal finances taking a few knocks during the coming months. Consequently more people were taking determined steps to reduce their debts, which is an “encouraging trend”.
“However, the number of people who are chronically in debt remains consistently high and may continue to be so, and that is a problem area.” he said. He advised people to take practical steps rather than brushing their financial worries under the carpet. There are ways to lighten your financial burden such as remortgages, shopping around before taking a loan and seeking advice from your bank or broker before you choose a credit product.
Consumer Barometer2 is the first of such surveys done by More Than which is a leading provider of financial services like mortgage protection insurance, life insurance, critical illness cover and even a credit card. Consumer Barometer2 will be published regularly and More Than hopes it will accurately monitor the financial health of the nation.
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