Household Finances
Recent surveys of over 2000 households have suggested that people are still struggling on stretched budgets.
The Bank of England's annual poll has concluded that over 50% of households struggled to meet credit card debts and other unsecured credit payments.
Almost a quarter of those surveyed said that they had cut back on spending because it was so hard to borrow or that they had concerns about over extending and then not being able to get the credit to service their needs.
The vast proportion of the survey, over 90%, felt that they would be hit by Government financial measures.
In contrast to this, however, less than half of those surveyed had put in place measures, such as reinforcing savings, to overcome this.
Around 50% of the survey said that they had concerns over debt levels and that these concerns had increased, over the last two years, in the wake of the credit crunch.
Again, half of the survey perceived that borrowing had become more difficult, especially those with high loan to value (LTV) mortgages.
As highlighted, almost a quarter of households are considering or have resorted to using credit cards and loans to meet bills. Although worrying, this is still below levels reported in the 2008 survey.
Share this..
Related stories
Credit Card Surfing is A Thing Of The Past
In the 1990s and early 2000s a new trend arrived in the credit card market, 'credit card surfing', whereby credit card holders were able to take up 0% balance transfer offers and affectively eliminate the interest they would normally paid on their credit card balances. These days are long gone if you listen to market observers and those connected with the deals. But why has it all changed?
...
UK government set to ban credit card cheques
In a major crackdown on the credit card industry it has been revealed that the UK government is set to outlaw the use of credit card cheques. The cheques are often used as an alternative to credit cards where the card itself may not be acceptable by a retailer or tradesperson. However, many people are unaware that these particular types of cheque attract handling charges as high as 3% as well as...
Read MoreShopping around for the best credit card rate
Over the last few weeks the headlines in the credit card industry have been fairly downbeat with the vast majority of credit card companies increasing their rates over the last few months. However, we are starting to see signs, albeit few and far between at the moment, of credit card companies trimming some of their rates for specific areas of the credit card market. While this is unlikely to turn...
Read MoreWhy playing fantasy football could be expensive!
There has been an explosion in the number of "fantasy football leagues" in the UK and around the world over the last few years. While many of these competitions are free to enter there are a number that charge a small monthly fee to cover expenses and also increase the prize pot at the end of the season. However, if you use your credit card to pay the monthly fee you need to be aware of any potent...
Read MoreBarclaycard receives serious rebuke for phones campaign
Ofcom has handed out the highest fine available to Barclaycard after a campaign of marketing / debt collection phone calls left record numbers answering their phones to a silent line. This is not the first time that the credit card companies have been caught out on this practice but even Ofcom was amazed at the figures involved (which were not released to the public). The regulator even suggeste...
Read More