Debt is a problem that is troubling increasing number of people, and it seems that the situation is about to become much worse over the coming years.
A recent survey has shown that nearly half of households in the UK anticipate that their financial situation will be worse in a year’s time than is it currently. This is over twice a many households than believe that their financial situation will improve over the coming year. This survey, which is carried out every month, has shown a similar level of pessimism for the last three months.
When asked about how their financial situation had changed over the last month, 27% reported that it had deteriorated whilst only 7% reported an improvement. Income from work has fallen as have the levels of savings.
The level of confidence is falling faster than at any time since the survey was initiated eighteen months ago. The major concerns were job security and the levels of debt, though it seems that many people have been attempting to reduce them. 17% of respondents have less debt than they had one month earlier whilst 14% had higher debts. People are also more cautions about making large purchases.
There seems to be little hope that optimism will increase in the foreseeable future. The new measures introduced by the government to reduce National Debt will make it harder for the large majority of us. Job security is unlikely to improve and there will be less money around generally as pay rises are frozen and taxes increased.
If possible, then now is a good time to follow the lead of the government and to make an attempt to reduce personal debt.
Are you concerned about debt and are you seeking to reduce the amount of money you owe? Gregory Pennington is a Debt Management organisation which has helped over 100,000 people with debt problems.
