Rural residents 'consistently overspending'

17/09/2008

Many people living in rural areas are spending more than they earn, specialist insurer NFU Mutual has said.

The firm has released new research showing that 20 per cent overspend in this way each month.

This makes it more likely that the countryside residents will be forced in to taking out some type of credit, such as a card or a loan, in order to meet their costs.

NFU Mutual also revealed that one in three people were not putting much money by in savings - and 44 per cent did not believe that life insurance was a "priority" for them.

Laura Wood at NFU Mutual said: "Although spending on the whole outweighs saving, it is reassuring that rural people are still willing to put some money aside for a rainy day and also enjoy themselves a bit too."

She also said that the lack of interest in life insurance among the rural residents was because of the country way of life.

"They may believe that living in a rural community provides them with closer links to their wider family and friends who would take care of their dependents if the principal wage earner was not around," Ms Wood said.

Tags; Budgeting Advice, Young Family Finances, Retirement Money Problems,

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