More people could need help with debt problems
October 15, 2010
A recent survey has suggested that a greater number of people are likely to need debt and advice and assistance now than three years ago. The conclusion was reached following a survey of household finances, which looked at the amount people saved, spent, and had left over each month compared to three years ago.
The results of the survey showed a much bleaker picture than three years ago, with millions of households now worse off in terms of their finances. The global financial crisis and the recession has played havoc with the finances of many people and for many debt problems are becoming more and more of an issue.
The research was carried out by Legal & General to form part of its MoneyMood Survey, and the results showed that nearly three million households across the UK were no longer able to save money like they were just three years ago. It showed that around 2.8 million households were now in a worse financial position than they were in 2007.
The survey also showed that there had been a significant reduction in the expense cover, which is used to describe the number of families who had cash left over to spend once all of their bills and financial commitments were paid.
In September 2007 research showed that around 60 percent of households had money left over to spend once household bills and other financial commitments had been paid each month. However, in September of this year this had fallen to around 50 percent.
Mark Gregory, executive director of savings at Legal & General, said: “Right across the country, no matter where they live, people are reporting that they’re worse off now than just a few years ago.”
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