You are here: Home - Credit Cards & Loans - News -

Five million working people struggle with money worries

Written by:
Nearly five million working Brits are worried about their financial situation, according to research by consumer group Which?.

In total, 28% of all UK households said they experience some form of financial stress be it relying more on overdrafts and loans or struggling to pay bills.

But among working households, the figure jumped to 61%.

The most common forms of financial distress for working and struggling households were a reliance on more traditional types of borrowing. Some 20% of people had a loan or credit card, had borrowed money from friends and family, or had used authorised overdrafts as well as cutting back. One in five people had defaulted on a loan, bill, mortgage payment or rent.

Nearly two fifths of these households thought their financial situation would get worse in the next year. The top worries for these people were levels of household debt, fuel prices, housing costs, the prices of food and levels of savings.

Vickie Sheriff, Which? director of campaigns and communications, said: “It’s alarming to see how millions of working households in the UK are struggling financially. Many are worried about paying their rent, mortgages, everyday household bills and loans. What’s worse, is that one in five of these households are relying on credit cards, overdrafts and the goodwill of their friends and family to help them get by.

“At a time when people are feeling the pinch, we are urging the Government to use its upcoming Budget to consider how it can deliver measures that will help those families that are working and struggling with money worries.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week