People 'fear inflation most' as threat to personal finances

24/10/2008

Consumers' biggest personal finance fears have been revealed, in a new poll from the Association of Investment Companies (AIC).

Two separate surveys were conducted, one for members of the public and one for active investors.

AIC found that 52 per cent of the general public find rising food and fuel prices to be their biggest worry.

The looming recession came in second place, on 13 per cent - while the credit crunch was feared most by eight per cent.

For the investors, 29 per cent saw inflation as the biggest threat, while 22 per cent cited the recession and ten per cent the credit crunch.

Commenting on the results, Annabel Brodie-Smith, AIC communications director, said: "It's easy to see why investor confidence has suffered after the rollercoaster performance of the market over the last year."

Kevin Still, EuroDebt director, said: "Growing costs with no compensating increase in net income is always likely to cause alarm and as we have seen with rising fuel prices this can happen very quickly.

"The continual erosion of disposable income, which is not just limited to food and fuel, is hitting everyone - I am sure the majority of households will have seen above inflation increases in insurance premiums and interest rates on any unsecured borrowing increasing where the card issuer’s agreement allows them to do this."

Tags; Budgeting Advice, Young Family Finances, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•