Are Brits feeling better about their personal finances?

personal finance
The news broadcasts are often all doom-and-gloom when it comes to personal debt and the financial decline of many households, especially since the recession hit.

We hear stories about families having to visit weekly food banks, people being made redundant, and more young people suffering with homelessness – as seen in this week’s Guardian article. But could it be that in reality, more Brits are feeling better about their personal finances? It seems hopeful.

This Telegraph article has highlighted the possibility that more British households have a firmer grasp of their monetary situations, and overall feel better about their finances than ever before. This is down to rising salaries and a better understanding of borrowing and personal debt. With thorough education and financial support available through various means, UK families are starting to become far more savvy with their spending and financial decisions.

Mr Stewart from Deloitte commented on the study which the news article was based on, saying that “Household expenditure is set to remain the engine of UK growth over the next year.”

Better Education

Wonga SA, the personal loan company, believe that financial literacy is the key to better financial management. With education about money and personal spending, Brits can make more informed choices and not waste money. They can also put their money to better use. When it comes to debt and personal loans, Wonga says that in a study they conducted, 83.7% of people said they would take out credit to buy a house. This shows good financial awareness – a property is a wise asset to invest in when it comes to applying for a loan. The study also found that 58.6% of those surveyed said they would take out credit for university education – another worthwhile investment. Interestingly, only 5% would take out a loan for gadgets, technology or fashion. Many might consider this not a worthwhile investment and not a great use of a loan.

If it is true that Brits are becoming wiser with their money, then this is encouraging for the country. Personal debt can be extremely troublesome and cause great feelings of depression, anxiety and stress. It can often lead to many other problems, including breakdowns in relationships. Many people are unable to cope with the pressure that mounting loans, debts and overdue bills or payments can create. It can often be a downward spiral. If this sounds like something you can relate to, there are services on the internet to help you., and the Money Advice Service, both have websites and hotlines you can call to get advice about how to improve your current situation. Simply admitting you have a problem with your money can be the first step to improving your finances and becoming happier and more in control of your hard earned cash.

Together, we can create a healthier financial outlook for our families and future generations.

You may also like...