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Southport and  Mersey Reporter -  Your free online newspaper service covering the Merseyside region - (Greater Liverpool).
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Issue:- 12 September 2014

Debt worries rise as economy grows

THE economy is growing and unemployment falling yet even more people are worried about debt.  A new infographic, Personal Debt In The UK 2014, from award winning financial solutions company Baines & Ernst, reveals that 51% of us are suffering financial anxieties. This figure is up by 20% on the same survey last year when 42% admitted money worries.

The infographic also shows that concerns about payday loans have shot up by 200% over the last 12 months. The latest figures, based on research carried out by ComRes, also reveals 9% of people are worried about high interest debts.

The statistics, which show 43% of people are struggling to make it to pay day, also point to a growing reliance on credit. According to the poll, 43% say credit card debts cause them the most worry. This figure is up by 33% on last year and 22% are also concerned about their overdrafts. Seventeen per cent of those polled are worried about bank loan debts compared to 9% last year.

The findings may surprise the Government, which recently revealed that the UK economy has grown by 3.1% while the number of people out of work is at its lowest level in 5 years.

"We were interested to explore debt levels in the UK and revisit our previous infographic to see whether statistics relating to debts had improved or declined over the past 12 months. What we found, is that while the economy is certainly moving in the right direction, people are still struggling to keep up with debt repayments as the cost of living continues to rise." says Shaz Sulaman, joint Managing Director of Baines & Ernst. 

The 2014 infographic confirms that the cost of living is a major factor. The survey's multiple choice questionnaire reveals that 59% struggle with rising food prices, 52% with energy bills and 38% say growing transport costs are an issue. 25% say credit card payments are causing problems.

Shaz adds:- "The figures also show that a quarter of those polled expected their financial situation will worsen in the next 6 months.  If you cannot afford to repay your credit card or store cards in full every month and continue to spend, your situation can easily spiral out of control. Turning to credit in order to make ends meet or write off existing debts could lead to further financial problems in the future. There are many solutions available, from budgeting advice to debt repayment plans that make getting out of debt more affordable, so we would urge those who are worried to seek help from a reputable professional financial solutions company, as soon as possible."

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