Almost one in three people in Great Britain expects a drop in disposable income this year either through salary cuts or increased costs as the effects of the recession take hold, meaning more people may have to utilise secured credit.

New research from Virgin Money shows 29% of adults expect their income to fall over the next three months and the next 12 months. It also revealed an alarming lack of confidence in consumers' ability to pay household bills – even worse, one in 10 are not confident they can keep up mortgage and insurance payments and one in five are pessimistic about being able to afford new clothes.

Rob Clifford, UK managing director of Virgin Money says: "The economic outlook may look bleak and consumers are now familiar with harbingers of doom on a daily basis."

If you are having trouble paying for the essentials, talk to a broker and see if you can get hold of some secured credit to consolidate debt and bring your outgoings down. It's quick, it's simple and if it's planned right it shouldn't have any long-term consequences.

There is nothing wrong with struggling financially, but there is something wrong if you let it get the better of you. Don't avoid the issue and don't let it ruin every part of your life – nip it in the bud and begin getting a bit more confident about your financial future.

Clifford adds: "There is light at the end of the tunnel. Although there are signs of recession everywhere but there are also signs for optimism."

SOURCE: Virgin Money, 17/02/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.