Debt management high on consumers' agenda
Debt management high on consumers' agenda
Thursday 14th January 2010
Some 42 per cent of people have started paying off their non-mortgage debt faster than before, up from 34 per cent a year ago, according to the latest ABI Savings and Protection Survey. Of those saving regularly, only 17 per cent intend to save more in 2010.
Optimism towards the economic situation 2010 had decreased significantly, according to the report. Nearly a third of people expect the economy to get worse, up from 22 per cent in the third quarter.
Job security was also a significant factor, with 31 per cent stating they were more concerned about their employment prospects now than they were three months ago.
ABI director of research and chief economist Dr Rebecca Driver said consumer perceptions surrounding the current economy had deteriorated.
Seven in ten people felt they would have trouble coping financially if they lost their job, and a further four in ten admit they have not made adequate financial provisions to cope with such a situation, said Dr Driver.
"This is not because people are spendthrift - the majority would prefer to go without than get into debt, and there has been an increase in the number of people expecting to pay off their non-mortgage debt at a faster rate than compared to a year ago," she said.
"These findings highlight how important it is for any government to deliver policies that appeal to consumers' increasing sense of financial responsibility."
Recent figures from the British Chambers of Commerce reveal that 63 per cent of businesses are planning wage freezes or pay cuts in 2010, and 18 per cent are looking to remove benefits such as bonuses.
News article brought to you by Debt 1 – UK debt management specialists
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