Debt advisers urge care with finances as consumer confidence falls
on: August 14, 2008, 4:35 am
Release Author: Debt
Release Summary: Responding to recent research suggesting that
the number of people who feel they are still managing well in
the current economic climate has fallen, Debt Advisers Direct
have advised the public to keep a close watch on their finances,
and to seek expert debt advice immediately if they are unable
to meet their financial commitments.
Release Body: Responding to recent research suggesting that the
number of people who feel they are still managing well in the
current economic climate has fallen, Debt
Advisers Direct have advised the public to keep a
close watch on their finances, and to seek expert debt advice
immediately if they are unable to meet their financial commitments.
a leading market research company, have revealed that the number
of people who see themselves as living comfortably or managing
easily has fallen from almost two thirds (64%) in 2006 to just
over half (51%) this year, as rising costs of living and the credit
crunch put increasing pressure on peoples’ finances.
research also reveals a leap in those who feel money is tight,
despite getting by financially - this figure rising from just
one in four (25%) in 2006 to 39% this year.
spokesperson for Debt Advisers Direct commented:
“The fact that increasing numbers of people are feeling
the pinch is to be expected, but these figures give an interesting
picture of how people are actually coping with it at this time.
interesting is that 51% of people still feel they are managing
easily, which may seem a high figure to some, considering all
the stories in the news at the moment,” she continues. “But
it’s telling that the figure has fallen so sharply since
2006, which was a relatively good time for the economy.”
spokesperson went on to explain that the reported fall in confidence
could be the first stage of a more significant downturn. “When
the economy gets into trouble, the effects can take a while to
filter through. Many people are still managing well following
the buoyant economy of 2006 to late 2007,” she says. “But
as the problems begin to filter through – for example to
homeowners struggling to sell their homes, consumers facing higher
food prices and bills, etc. – we may well see more people’s
circumstances take a turn for the worse.”
report coincides with Nationwide Building Society’s latest
Consumer Confidence Index, which reveals that consumer confidence
has taken a further fall, down 18% since July and down 43% since
this time last year.
Debt Advisers Direct spokesperson said: “Consumer
confidence can be affected by things like the media portrayal
of the economy, but a large part of it does come down to personal
those who have not been terribly affected by the credit crunch
will have noticed how quickly the price of food and household
costs are rising. And those people are quite right to be concerned
about what the future may hold.
would advise everyone to keep a close watch on their finances
at this time. Budget well, don’t overspend, and try to save
where possible. And if you do think you are getting into trouble
with debt, seek expert help from a debt adviser.
debt adviser will talk you through your situation and help you
to decide the best course of action. For example, if you have
a number of debts that you are struggling to balance with your
household commitments, a debt consolidation loan could help.
consolidation loans work by grouping all your debts together,
so you only repay one creditor instead of many,” she says.
“Payments can be rescheduled over a longer period of time
than the original debts, meaning payments are lower – which
could be a useful way of freeing up extra money for your other
living costs. But be aware that rescheduling your debt consolidation
loan will probably involve paying more in interest in the long
you find you simply can’t meet your payments, though, an
(Individual Voluntary Arrangement) or debt management plan
might be more suitable. If you’re unsure, as with any debt
solution, speak to a debt adviser first.”
Details: Press Contact: Melanie Taylor
Tel: 0845 056 6480