As the UK faces economic downturn in the wake of a credit crisis, Brits are being forced to face up to their financial situations, a new study from PruProtect has revealed.
As lenders shut their doors to new borrowers and hoik interest rates, Brits with debt
s are given no choice but to face up to them. The research from PruProtect has found that 52 per cent of people questioned consider their financial situation to be their biggest worry.
As the credit crunch tightens its grip on the UK, PruProtect also found that 58 per cent of participants believe their lives have become more pressured as a result of the current economic uncertainty.
The cost of living is rising at record speeds as a result of increased oil prices; consequently the survey found that paying the bills on time is a top priority for 85 per cent of Brits. A conscientious 35 per cent see calculating a household budget as a main concern.
As a result of tight credit and rising costs, PruProtect found that spending on luxuries such as holidays have taken a back seat as only five per cent of those questioned prioritised spending in these areas.
Although it described these figures as 'unsurprising', PruProtect found that almost one in 10 Brits takes the 'ostrich' approach to their finances by burying their heads in the sand.
The research also found that only 13 per cent of participants have mortgage
payment protection insurance, payment protection insurance
or accident, sickness and unemployment insurance, putting them at risk of financial danger in the case of an accident or illness.
Despite the lack of insurance, PruProtect found that less than a fifth of people questioned believed they would be able to maintain their lifestyle if they fell ill and were unable to work. Even more concerning, according to PruProtect, is the fact that a third of those asked have no idea how much money they would need to live off if they were incapacitated.
CEO at PruProtect, Sammy Rubin, said: "There is obviously a gap between what issues we, as a society, are worrying about 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."
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