Personal Debt Affecting Household Income Levelsposted on 26 July 2011 | posted in General Category | ( 0 ) CommentsHousehold finances for the month of July have continued to decline, with the state of finances being blamed on both personal debt levels and inflation, and the trend is set to continue for the next 12 months or more. Consumer spending power has plummeted over recent months, with soaring inflation resulting in households having to increase the amount that they are paying on essentials such as food, petrol and energy costs substantially. On top of these rocketing costs many consumers are still struggling with debt repayments, which have further impacted on their spending power and financial security. The data comes from Ipsos Mori, and showed that almost 40 percent of households reported deteriorated household finances. Many are having to find ways to cut back on their spending as a result of increased outgoings and with the latest round of energy price hikes that are set to come into play over the coming weeks things don’t look to be getting any better. There were only 6 percent of households that reported an improvement in their household finances. According to the research group, inflation and high levels of personal debt were main contributory factors in the state of finances amongst UK households. The group also said that personal debt levels amongst households had increased for the fourth month in a row. This has been echoed by professional debt help companies like Integrity who say that more and more people are contacting them for professional debt help rather than free advice charities. One of the reasons for this is due to the understanding that the public now have regarding their personal financial situations. Darren Perks an advisor at Integrity commented: "It's now becoming more common to hear people say to us that they have received either bad or the wrong debt advice from free advice charities. This is a concern especially when times are hard and people have little money as it is. Another factor we hear on a daily basis is how people are passed on the to 'certain' IVA or DMP Companies from the charities, ultimately leading to this person having to pay high fee's and costs." Share this blog entry:
|
|||
Comments ( 0 ) - Add Your Comment |
|||
|
| |||||||
©Integrity Financial Services Ltd 2011 | ||||||||
