Over 34% of households expressed a worsening of their finances compared to only 5% that reported an improvement, this is the lowest level since early 2009 and is due to concerns with the economy, consumer spending and job losses, according to Markit’s household finance index.
Household have reported their financial outlook has slumped back to level seen during early 2009 when the recession was at its worst caused by an unhealthy combination of job worries and high inflation says Tim Moore senior economist at Markit.
Less than 25% of people have reported their financial situation will improve while over 43% a jump of more than 13% said their situation will worsen this reported by insolvency experts R3 and follows the increase of the Consumer Prices Index of 4% in January, the preferred measure of inflation by the Government.
From the VAT increase, the rise in utility costs and the rise in fuel costs, people have seen an increase in the cost of living even since we carried out the survey says R3 and all this has happened along with pay freeze, pay cuts and at times redundancies and it goes without saying it is understandable why people are feeling real pessimistic about their financial situation today and for the near future.
Credit card debt continues to be the biggest concern with those that are worried about making their debt payments and younger people are the most likely to worry, those between 25 and 34 are the most likely to worry about their debts with the least likely worriers being the 65 and over age group.