R2, an organisation that works with people dealing with insolvency, has been involved in compiling the results of a survey conducted in the West Midlands. The survey was carried out with the aim of answering questions regarding opinions on levels of personal debt in the economic climate that we are all living in.
With it becoming increasingly common for individuals and families to survive on credit this survey has provided some fascinating and unexpected insights. The top five main findings are detailed below.
1. At least half of all those surveyed expressed concern over their levels of personal debt including debt from mortgages, credit cards and loans as well as overdrafts. Of all those surveyed there were many with relatively low amounts of personal debt felt greater concern over the prospect of rising debt. Meanwhile there were also many with higher levels of debt who were not overly worried.
2. At least a quarter of the people interviewed confided that they could foresee their financial situation getting worse over the next 6 months from the date they were interviewed. This tells us that many people know they are facing an almost impossible task in clearing their existing debt to the point that they think they may even add to it.
3. Of the people surveyed almost half of them encounter serious difficulty in making it to the next payday on their current salary. The typical advice of budgeting according to your earnings and expenditure is simply not enough.
4. Over half of the people interviewed for the survey confess to difficulty in covering their expenses from month to month, believing their trouble stems from rising food and utility bills. They might have been expected to blame one-off, unexpected costs such as house repairs.
5. Professionals and the younger generations in society are the most optimistic. This is possibly due to falling inflation. Meanwhile the unskilled amongst the older generations are more negative. This is possibly due to the perception they have left it too late to learn new skills.
It is clear that it is always important to budget and plan beforehand. However it is also important to keep an eye on how things are progressing throughout the month in order to have realistic expectations as you go along.
There are many financial advice websites with valid information such as Moneysavingexpert.com. This site offers useful advice and tips as well as a wealth of experience contributed by its users. Don’t forget that you can alternatively make use of debt advisors to help you to navigate through all the jargon and choices.
Just make sure you pick one that is independent and is working to satisfy your best interests. Do not simply stick with your current loan or mortgage provider because you are familiar with them. Always search for the best deal available.