Financial stress continues to be a major concern for millions of individuals in the UK, as highlighted by the Financial Conduct Authority’s (FCA) Financial Lives survey. The report revealed that one in 10 UK adults are not saving any money at all, leaving them vulnerable to economic shocks and rising bills. The survey also indicated that anxiety and stress levels are high, especially among those burdened by debt. Despite the ongoing cost of living squeeze, the FCA reassured that the situation has not deteriorated and that free assistance is available for those facing financial difficulties.
The FCA’s Financial Lives survey, which surveyed nearly 18,000 individuals, serves as a snapshot of the nation’s financial state. Shockingly, 13 million people in the UK lack financial resilience, struggling with unmanageable debts, low savings, and missed bill payments. The survey found that 10% of respondents had no savings at all, while 21% had less than £1,000 saved. Other significant findings in the report include 2.8 million individuals with persistent credit card debt, 12 million feeling overwhelmed by financial matters, 3.8 million retirees worried about retirement finances, and nearly 10 million facing challenges accessing bank branches.
Moreover, the report highlighted a significant increase in the use of buy now, pay later services in recent years, with approximately 40% of lone parents and 35% of women aged 25 to 34 utilizing these deferred credit products. Overall, nearly half of adults in the UK have outstanding unsecured debt, with a median average of £6,300 among debt-holders. Debt advisers emphasized the importance of seeking help when faced with financial difficulties, as mental health issues often either stem from money worries or are exacerbated by them.
In addressing money worries, experts like Matt Dronfield, managing director of Debt Free Advice, advise individuals to prioritize essentials such as rent, mortgage, council tax, and utility bills. He emphasized the availability of free debt advice and urged individuals to seek help without fear of impacting their credit score. Dronfield also encouraged individuals without savings to consider “paying themselves first” by setting aside a portion of their income into a savings account. By adopting a savings habit, individuals can better manage their finances and tackle financial challenges more effectively
Read the full article from The BBC here: Read More
