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21/02/2011

Four in ten expect their finances to worsen

Over forty percent of people (43%) believe that their financial situation will worsen over the next six months, according to a quarterly survey by R3, the insolvency trade body - an increase of 13 percent on the last quarter. Incidentally, less than a quarter of people (24%) believe that their financial situation will improve in the same period.

R3 President, Steven Law commented:
“Since we last carried out the survey, people have seen a rise in the cost of living, from the VAT increase; to the rise of fuel and utility costs. This has happened against a backdrop of pay freezes, pay cuts and, in some cases, redundancies, so it is understandable that many are feeling pessimistic about their financial outlook.”

 

The research shows that the number of people who are worried about their current level of debt has increased by 6 percent in the last quarter, with close to half (45%) now concerned about the amount of debt they owe. Credit card debt continues to be the main source of worry, with more than half (56%) expressing concern.


Research finds that younger people are more likely to worry about their debts. Those aged 25-34 are the most likely to be worried about their debts at 57%; meanwhile just 20% of those aged 65 and over are concerned about their debts - making them the least likely to be worried.

“In my experience, most people’s debts become unmanageable due to a change in circumstance, such as sudden unemployment. This no doubt accounts for the generational split with regards to debt worries. In these uncertain times, for many of those of working age there is a real fear that if they do suddenly lose their job they will struggle to keep up with their debt repayments.”


Methodology Note
ComRes interviewed 2031 GB adults online between 21st and 23rd January 2011. Data were weighted to be representative demographically of all GB adults. ComRes is a member of the British Polling Council and abides by its rules (www.britishpollingcouncil.org ).


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.