According to a recent report, an ever increasing number of Brit’s are getting worried about their finances.
In a recent study carried out by Gfk NOP, it was revealed that the nation’s financial situation has continued to get worse. The research company announced that the overall index which measures Briton’s opinions on the economy slipped to -29 over the course of May. Such a figure represents a fall of five points from the -24 seen in April and down from -2 which was recorded this time last year.
The firm’s index that measures the consumers opinion of their personal financial situation for the last 12 months was shown to have fallen by three points to stand at -11, the lowest figure recorded for 30 months. Meanwhile, predictions over how they will manage money over the next 12 months is similarly bleak. This index is at -4, a fall of 17 points from last May.
Because of such worries about their personal financial situation, it may be possible that people are struggling to meet demands on their monthly expenditure such as credit cards, loans and domestic bills.
On top of all this, the measure tracking how the economy as a whole has fared over the past year is at -58, a fall of 40 points from the study conducted a year ago and the lowest figure recorded for longer than 15 months. On top of that, expectations about the nation’s general financial situation stands at -39.
Further research from them also indicated that the index that measures whether or not society thinks that it is currently a good time to make a significant purchase has continued to slip. This measure was reported to be currently standing at -32, a reduction of eight points from last months data and 36 beneath where it was in May last year. This months’ figure was also shown to be the worst score ever recorded since Gfk NOP began its study in the early 1980s.
However, for consumers who are thinking about making a purchase, which could include a vehicle or property, using a cheap personal loan to fund such buying may be a good idea.
And with the public holding such concerns about their financial status, it is safe to imagine that more people will want to put more thought towards saving for the future. However, it would appear that this is not really the case as the index tracking whether people think that now is a good time to plan for the future has dropped. Down by three over the course of May to stand at +25, the index stands ten points lower than during the same period in 2007.
Speaking about the results, Rachael Joy, from GfK NOP’s consumer confidence team, said: “UK consumer confidence continues its decline and we are seeing levels not recorded since 1990; we are at a massive 27 points lower than this time last year. Buyers’ confidence in the economy over the next year, plus a reluctance to make major purchases, reflect the popular expectation of a recession - both these measures are at the lowest level on record. The future months may see even further fall in confidence, as rising inflation and dropping house prices make reigning in their spending even more likely to the UK consumer”
Those people with concerns about their ability to manage their finances over the remainder of this year could be recommended to take out a cheap loan. In doing so, this may allow consumers to deal with various constraints on their spending at once, leaving them with a single affordable repayment to make each month. This might be of assistance to a significant number of buyers after Michael Coogan, director general for the Council of Mortgage Lenders, expressed disappointment at the Bank of England’s decision to maintain interest rates last month. He claimed that although most people should be able to cope, the housing and mortgage markets will encounter problems over the course of 2008. Mr Coogan advised those concerned about their ability to manage their money to contact their loan officer or a financial advisory service immediately.