The effects of the credit crunch have left few people in the UK untouched, with living costs continually rising and credit conditions tightening. Therefore, it is unsurprising that a new study from GE Money records that 27 per cent of people sometimes or always feel their finances are out of control.
However, while an additional eight per cent claimed they regularly exceeded earnings, 37 per cent said their spending habits have altered in the last six to 12 months; most claim to be making the effort to cut back on spending. Nevertheless, almost 40 per cent still said they are completely out of funds at the end of each pay cycle.
Commenting on the research findings, a GE Money spokesperson said: "As we approach summer, we are urging people to take an active interest in sorting out their finances. With the cost of living increasing this is no time to relax; it is important that people take stock and ensure they know exactly what they owe and when."
However, while many appear to be struggling, 33 per cent said they were debt
free and 44 per cent claimed to be topping up savings accounts
with between £1 and £500 from each pay packet.
The research also suggests that Brits are displaying a greater need for financial responsibility. More than half said they could be doing more to manage their finances.
Director of Credit Action, Chris Tapp, said: "Struggling financially can feel like being the passenger in a speeding car with things moving very quickly and seemingly totally out of control.
"Even when people want to sort their financial situation out, they may not know where to go for information and advice.
"The web is now the second most popular place for people to turn, after friends and family, so it's important people are aware of the good sources of help that are available."
© Fair Investment