- 29
- May
Results of a consumer poll conducted by Prudential suggest that concerns about the stability of finances are becoming prominent among many consumers.
According to the group, more than half (52 per cent) of all respondents felt that their finances were their biggest area of concern, followed by family health (46 per cent) and their own wellbeing (40 per cent). A further 58 per cent of people said that their financial situation had become a greater cause for concern during the recent period of economic uncertainty.
Making sure personal loans, credit card and other bills were paid on time was identified as a key area of concern for 85 per cent of those questioned, while 35 per cent of respondents stated that calculating household budgets was a top priority. Conversely, only five per cent of people said that they were prioritising things like taking family holidays as the rising costs of fuel, food, energy and mortgages reduced levels of expendable income.
The group reports that with everyday costs of living rising continually, many people are beginning to feel that they would be unable to cope if an unexpected occurrence limited their ability to pay the bills. Such areas of concern were said to be getting made redundant or suffering an injury. According to the poll less than a fifth of respondents felt that they would be able to maintain their lifestyle if such an event were to occur.
Furthermore, despite concerns about financial security, the study revealed that nine per cent of respondents had no insurance policy in place to protect them against a loss of earnings. If such a situation was to befall these individuals, it is possible that they would have to turn to credit cards or personal loans to cover the costs of living.
Just 13 per cent of people were said to have taken precautions in the form of mortgage payment protection insurance, payment protection insurance or accident, sickness and unemployment insurance.
Sammy Rubin, chief executive officer at PruProtect, says: “There is obviously a gap between what issues we, as a society, are worrying about and what we’re doing to alleviate these worries. Protecting ourselves in the event of changes to our personal circumstances can take a huge weight off our minds.”
While the Prudential study suggested that seven per cent of Britons prefer not to think about their financial troubles, the majority (83 per cent) said they felt they were committed to taking charge of their money matters despite growing constraints.
For those who have found themselves out of work or struck by illness without insurance cover, taking out a low-rate loan may help them to meet the costs of living during recovery. By taking out this type of cheap loan, people may find they have the financial backing necessary to make sure monthly bills and repayments can be met, thereby reducing the risk of further debt or a receiving a bad credit rating.
Earlier this year independent financial advisory service the Motley Fool suggested that meeting the cost of daily living expenses was becoming increasingly difficult for middle-income families.
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