- 15
- Sep
As the credit crunch continues to tighten family purse strings, making sure the bills are paid has become the biggest priority for British households.
Such is the suggestion of Abbey, which suggested that meeting payment commitments now outweighs saving for the future and managing a healthy life and work balance. In a recent survey, the financial services provider found that paying bills was the biggest priority for 41 per cent of people. Meanwhile, striking a good balance between their job and their home life was the most important consideration for 13 per cent of people, while fewer than one in ten (9 per cent) said that saving for the future was their top concern.
For more than one in five (21 per cent), ensuring that mortgage contributions were made on time was now their top priority. Indeed, Abbey suggested that as a nation, Britons seem to be increasingly aware of the importance of making payments. When asked what they would do with a 10,000 pound windfall, 18 per cent said the first thing they would do would be to make an overpayment on their mortgage to release their overall debt levels.
A third of people said they would put a 10,000 pound windfall into a savings account, again showing Britains desire to make money go as far possible. And it seems consumers are looking for sure investments on the whole, although seven per cent said they would play the stock market with the money. For a generous four per cent of people, spending money on the family would be the first course of action in the event of receiving such a payment. Meanwhile, 12 per cent of those questioned were committed to making overpayments on their home loan this year regardless of whether or not they receive a windfall.
However, homeowners who have found themselves struggling as monthly payment responsibilities mount may be interested in taking out a debt consolidation loan to get their finances back on track.
Indeed, Abbey suggests that Britons are now focusing on using their money on more basic areas of spending such as credit card and loan payments, utility bills and mortgages - and are forgoing luxuries like new cars or holidays in order to make sure their finances see them through the month. A gender-based analysis also shows that women are particularly determined to reduce their debt levels, with 46 per cent listing monthly repayments as their top priority, compared with just over a third (34 per cent) of men.
Commenting on the findings, Phil Cliff, director of Abbey Mortgages, said: "Concerns about the economy are definitely being reflected in the UKs spending habits as Brits would rather put money into their home and ensure they can pay their monthly energy and mortgage bills, rather than spend on extravagant holidays or expensive cars."
In other developments, Centre for Economics and Business Research commentator Charles Davis recently announced that many consumers are still battling to avoid "dual hit" of the credit crunch and inflation. For those who have found the problem insurmountable, taking out a consolidation loan may be of interest.
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