UK households are still struggling financially, a survey has suggested.
The annual poll of almost 2,000 homes for the Bank of England found more than half struggled to meet repayments for credit card or other unsecured debts. About 22% of people said they were put off spending because of concern that it was becoming harder to borrow, up from 17% a year ago. The survey also found that 90% of respondents expect to be heavily affected by government austerity.
When you read something like that it is very scary to think that this is 2010 and not the 1930’s. Yes we are, so some experts say coming out of a world recession, but the purse string holders are the ones who can make life a little easier for the consumers of this land. Isn’t it about time that pressure was put on the powers that be, to do something positive for the country, instead of cuts to the economy which is crippling industry and causing redundancies? With people struggling to make ends meet for one reason or another and borrowing from banks almost impossible something must be done instead of credit card companies pushing there product at you, maybe they should be more responsible with card limits and refusals. With the banks refusing to give loans most people are turning to doorstep lenders which charge extortionate rates and so there debt spirals, one door step lender is now offering credit cards, can this be right? The so called experts tell us we are out of the recession, with the way household debt and budget cuts are going we will be heading back into it soon. With Christmas around the corner more families will be in a position of not being able to pay there bills.
Reliance on credit cards and personal loans also appeared to be a growing problem.
Over a fifth of households said they were saving or intended to save more, although that was slightly down from a year ago. A quarter of households reported struggling to meet bill payments, up from last year, though still slightly below 2008 levels. Nearly half of households expressed concerns about their level of debt, with a majority saying they had become more worried over the last two years. However, fewer than half had taken any steps in anticipation of the budget cuts, such as increasing savings, working longer hours or looking for a new job.