Poll: 80% of Brits in need of financial advice

08/09/2009

Around 80 per cent of Brits could be in need of professional advice to help them reduce debt, increase savings and plan for retirement - but as many as one in four are pinning their hopes on the lottery to improve their financial situation, according to a new survey published as part of Financial Planning Week.

The YouGov poll commissioned by the Institute for Financial Planning and National Savings & Investments found that 41 per cent of Brits feel they need to save more, while another 40 per cent want to cut their debt burden.

Yet, while only one in five are happy with their current financial circumstances, only one in 20 will seek professional advice to improve their situation.

By comparison, five times' this number are prepared to gamble on winning the lottery to improve their money situation, despite the odds of scooping the jackpot standing at an astronomical 14 million to one.

As part of Financial Planning Week, which runs until September 13th, the event's official website is advising consumers to identify their financial priorities for the short, medium and long term and to draw up - and stick to - a budget.

It also encourages individuals to calculate the true cost of taking on loan or credit card debt and to ideally aim to put away the equivalent of two to three months' pay as a "cash cushion".

EuroDebt director Kevin Still said: "Some of the top ten tips provided on the website are very appropriate for people in financial difficulty or struggling with debts. EuroDebt would strongly endorse the need for tight budgeting and where feasible 'stash some cash'.

"While it is not always possible to build up a cash cushion of two to three months' expenditure, it may be possible to use the benefit of interest rate cuts to build up an emergency fund.

"With regard to debts, working out a plan to pay off your debt is vital, especially if you are unable to meet minimum contractual payment. EuroDebt recommends you tackle your high interest debts first, like credit cards being careful to prioritise mortgage repayments, tax bills and utility bills, as non-payment can have very serious consequences.

"Give yourself a financial health check by using the EuroDebt Debt Calculator - it will tell you whether the government would regard you as indebted and whether you should be concerned about your finances today or in the future.

"Coming out of recession will present new challenges for many homeowners, especially if interest rates rise sooner than predicted."

Tags; Budgeting Advice, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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