Even though the general economy is showing definite signs of recovery from the recession, over half of the British population is still struggling to make ends meet, according to the annual survey taken by NMG Consulting. The survey, taken for the Bank of England, reported that 51% of the heads-of-households questioned said they were having trouble making the payments on unsecured loans, personal loans and credit cards.
About half of the 2,000 survey participants said their disposable income had dropped in the last year, with more than a quarter of them reporting a drop of at least £100 in monthly income. Again, about half said they had cut down on spending in order to pay off debts; about 18% said they had taken on a second job and/or were working longer hours just to keep up with payments.
Approximately half the people surveyed said they found it very difficult to get a new loan, and those with high loan-to-value mortgages were having trouble finding sources for a reduced-rate loan. Overall, close to 90% of the participants expressed concern over the impact of government fiscal policies, chiefly higher taxes and reduced services.
The combination of continued high levels of unemployment, lack of substantial earnings increase, and the difficulty of obtaining new credit means that many of the working population are feeling the burden of a restricted budget. The research also indicated that many people are not getting the advantage of lowered interest rates on loans, but are using cash from existing credit lines instead.