Brits could be facing an even worse financial situation in the New Year, as disposable income levels are expected to drop.
According to research from uSwitch, almost half of Britons will notice a reduction in their disposable income over the next year, with many people being left without any excess money at all.
The survey revealed that a large number of consumers are concerned about the current state of their finances, with less than half feeling confident about their current situation.
This feeling of uncertainty means that individuals will be preparing to make cuts and reductions ahead of the New Year, intending to start 2012 on a more financially secure footing.
Seeing as uSwitch claim that 10% of Brits will be left without any disposable income in 2012, this means that finding ways to make savings is going to be even more important for some individuals.
An expert in personal finance from uSwitch, Michael Ossei, commented that consumers are likely to “cut back, curtail spending and try to clear outstanding debt” as another year of financial restrictions lies ahead.
Major concerns over money matters involve worries over bills and the general cost of living. With a number of amenities having undergone price increases, with more expected throughout 2012, Brits could find that their income can no longer support their financial obligations.
This has led to a fraught situation, with a number of consumers revealing that money matters are the main causes of arguments within the home.
Saving money is, therefore, going to become the first line of defence, providing people with a way to combat subsequent price increases and reduced disposable incomes.
uSwitch’s Ossei explained that, “taking control of your budget, stripping down living costs and making sure you’re not paying too much for your household bills will free up more disposable income and potentially allow you to save for the future” – thus making it the best course of action in light of this news.
If you have taken up the option of a loan due to escalating money problems, it might be advisable to seek debt advice and find a suitable debt management solution going forward.
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