Repayment fears caused by recession

04/02/2009

Just under a third of Britons are dicing with debt - by planning to cut back on essential repayments.

According to a new survey from financial website Fairinvestment.co.uk, 20 per cent of people are considering reducing their credit card repayments - while another seven per cent are thinking about doing the same for their personal loans.

More worrying still, a hard core of four per cent could cut mortgage costs, due to the budget pressures of the credit crunch and the recession.

In all, 62 per cent of people polled by Fairinvestment.co.uk said that they were suffering from stretching budgets at the moment.

Sharon Bratley, chartered financial planner at the site, commented: "The results show how difficult it is for people at the moment to juggle their finances.

"It is important that people prioritise their outgoings and try to reduce their debt as far as possible, so cutting back on non-essentials like saving contributions makes sense."

Britain officially entered recession at the end of last year, with government figures showing that the economy was shrinking faster than at any time for almost 30 years.

Also commenting on the Unbiased.co.uk research, EuroDebt director Kevin Still said: "These survey results demonstrate that it is the majority of UK consumers that are feeling the pinch and belt tightening can only go so far.

"It is essential that people understand the importance of meeting priority payments like mortgage, rent, council tax and utility bills to avoid putting their home at risk."

Tags; Housing Debt and Bills, Recent Graduate Debt, Young Family Finances, Credit Card Lifestyle,

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