"Financial meltdown" for 11.6m Brits

10/12/2008

Money problems caused by the recent credit crunch have left 11.6 million Britons facing "financial meltdown", new research from Axa has revealed.

Mortgage arrears, credit card bills and a lack of savings are all causing sleepless nights for borrowers.

A lack of savings is the most common financial crisis, with 54 per cent of struggling consumers explaining that they have spent all saved cash.

A further 3.7 million (33 per cent) cannot cope with credit card bills, while just over a million (nine per cent) have fallen behind with mortgage payments.

The credit crunch has not only added to the cost of borrowing, but has also had a negative impact on savings and investments with Axa revealing that 1.7 million people have seen investments plummet in value the past few months.

Steve Folkard, from Axa, explained: "The deterioration in people's standard of living and the effects of the credit crunch on finances are hitting people hard.

"For many people that means running out of savings or struggling to meet repayments but for some it's more serious still and can spell bankruptcy, an IVA or repossession."

Tags; Housing Debt and Bills,

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