A Third Cutback On Essentials

Brits are feeling the pinch, so much so that the first monthly payment to go for 31% would be essential outgoings including loan repayments, credit card bills and mortgage payments

New research from Fairinvestment.co.uk has found that 62% of Brits have noticed their finances being stretched since the beginning of the credit crunch. And, as budgets are stretched, a third of them are considering cutting back on essential monthly repayments and bills including credit cards, loans and mortgages, suggesting that their finances are being so badly stretched that they have already made significant cutbacks elsewhere.

When asked what one monthly payment they would cut back on if they had to choose one, a fifth of respondents said they would have to re-assess their credit card repayments, 7% said they would have to cut back on their monthly loan repayments while 4% of respondents would be forced to look at their mortgage payments.

Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, says: "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.

"It is vital that if people have to cut back, they do so in a way that doesn't actually cost them anything more, for example, you should keep paying your mortgage and credit card bills to ensure that you don't have any further charges applied."

If you are having trouble meeting all your demands, it might be time to consider having less demands – consolidate all that you can to avoid having to miss payments, which could cost you more than you think.

SOURCE: Fairinvestment.co.uk, 03/02/09

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