Families in need of a ‘debt reality check’
British families are in serious need of a financial “reality check”, according to research.
The latest Alliance Trust Financial Reality Index suggests that despite financial conditions worsening for families, consumer spending has maintained a steady rate of 2.5 per cent.
Findings were based on three factors, including the country’s general background, household budgets and net wealth.
The report states: “Consumers are becoming increasingly stretched in an effort to maintain their existing lifestyle.
“Debt, in particular, is becoming an ever bigger burden for many households, particularly during a period in which interest rates and the cost of servicing debt, is increasing.”
It predicted that consumer spending is likely to slow down as consumers take a “reality check” over their financial situation.
Homeowners looking for an affordable way of tackling outstanding repayments to numerous creditors may wish to take out a debt consolidation loan.
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