Personal finance confidence improves

Couple discussing budget
david-menzies By David Menzies, ICAS Director of Insolvency

19 February 2016

The most recently monthly personal debt snapshot carried out by R3 shows increased confidence in personal finances.

Recent research carried out by insolvency trade body R3 has shown that shows that fewer British adults say they are struggling from payday to payday than at any point in the last six years. Just over a third (36%) of British adults say they often or sometimes struggle to payday. This is well down from a record high of 51% in May 2012.

The Personal Debt snapshot for January 2016 also shows that British adults monitor their own financial situation closely and most tend to plan ahead financially. However, the majority of adults do not save for their retirement and have never consulted an Independent Financial Advisor.

Almost two in five of British adults say they are at least fairly worried about their current level of debt while nearly a quarter of adults say they have no savings at all at the moment.

Reflecting the tight personal cash flow that many report experiencing, the survey also shows that four out of every five adults will monitor the balance on their current account at least weekly while two thirds will go through their spending at least monthly.

Philip Sykes, R3 President said: "Low inflation,  low  interest rates,  and  some real  wage  growth have  helped  British personal finances into an increasingly better shape. We’re seeing record low levels of economic pessimism and struggles to payday. Debt worries are down too."

"But the same problems remain.  Although numbers  are  at  a  record low,  at  least a  third  of British  adults struggle to make it from payday to payday. Similarly, around two-fifths of British adults, equivalent to nineteen million people, are worried about their debts."


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