UK finances are 'stretched'

UK households are increasingly finding their finances stretched as they struggle to pay off debts and save cash for a rainy day.

New research from the Bank of England highlights that 90 per cent of people think they will be negatively affected by the government spending cuts.

However, fewer than half of these individuals had put measures in place to prepare for the cuts, such as saving more and working longer hours.

In order to cope with their squeezed finances, almost a quarter of respondents said they would be reining in their spending in the coming months, an increase from 16 per cent last year.

However, concerns about stretched finances are not putting Brits off splashing their cash over the festive period.

Recent research from the Barclays Group highlighted that almost £50 million will be spent over Christmas in the UK, an eight per cent rise compared with last year.
 

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2010-12-13 18:28:20 © Moneyextra.com