This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11979894
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| UK household finances still stretched, survey suggests | UK household finances still stretched, survey suggests |
| (12 days later) | |
| UK households are still struggling financially, a survey has suggested. | UK households are still struggling financially, a survey has suggested. |
| The annual poll of almost 2,000 homes for the Bank of England found more than half struggled to meet repayments for credit card or other unsecured debts. | The annual poll of almost 2,000 homes for the Bank of England found more than half struggled to meet repayments for credit card or other unsecured debts. |
| About 22% of people said they were put off spending because of concern that it was becoming harder to borrow, up from 17% a year ago. | About 22% of people said they were put off spending because of concern that it was becoming harder to borrow, up from 17% a year ago. |
| The survey also found that 90% of respondents expect to be heavily affected by government austerity. | The survey also found that 90% of respondents expect to be heavily affected by government austerity. |
| However, fewer than half had taken any steps in anticipation of the budget cuts, such as increasing savings, working longer hours or looking for a new job. | However, fewer than half had taken any steps in anticipation of the budget cuts, such as increasing savings, working longer hours or looking for a new job. |
| The annual survey, produced by NMG Consulting, was carried out in September. | The annual survey, produced by NMG Consulting, was carried out in September. |
| Debt worries | Debt worries |
| Nearly half of households expressed concerns about their level of debt, with a majority saying they had become more worried over the last two years. | Nearly half of households expressed concerns about their level of debt, with a majority saying they had become more worried over the last two years. |
| Borrowing was also said to be getting more difficult, particularly for those with big mortgages, 50% of whom said credit availability had got worse. | Borrowing was also said to be getting more difficult, particularly for those with big mortgages, 50% of whom said credit availability had got worse. |
| A quarter of households reported struggling to meet bill payments, up from last year, though still slightly below 2008 levels. | A quarter of households reported struggling to meet bill payments, up from last year, though still slightly below 2008 levels. |
| Reliance on credit cards and personal loans also appeared to be a growing problem. | Reliance on credit cards and personal loans also appeared to be a growing problem. |
| "The burden of unsecured debt has risen this year, most likely reflecting a combination of weak earnings growth and the interest rates on unsecured debt remaining high over the past two years," noted the Bank in its report on the survey. | "The burden of unsecured debt has risen this year, most likely reflecting a combination of weak earnings growth and the interest rates on unsecured debt remaining high over the past two years," noted the Bank in its report on the survey. |
| Spending habits | Spending habits |
| Those debt concerns have translated into a higher savings rate. | Those debt concerns have translated into a higher savings rate. |
| Over a fifth of households said they were saving or intended to save more, although that was slightly down from a year ago. | Over a fifth of households said they were saving or intended to save more, although that was slightly down from a year ago. |
| Most of the planned saving is to be done by those under 35 and - worryingly for the economy - by those in the highest income brackets, meaning the impact on overall spending may be magnified. | Most of the planned saving is to be done by those under 35 and - worryingly for the economy - by those in the highest income brackets, meaning the impact on overall spending may be magnified. |
| The report noted that the Bank of England had provided a fillip to many households by cutting base rates to a record low of 0.5%. | The report noted that the Bank of England had provided a fillip to many households by cutting base rates to a record low of 0.5%. |
| Unsurprisingly, the biggest impact was on the 23% of mortgage borrowers with base-rate tracker mortgages. | Unsurprisingly, the biggest impact was on the 23% of mortgage borrowers with base-rate tracker mortgages. |
| The 20% on standard variable rate loans benefited less, at least in part because banks have not fully passed through the rate cuts. | The 20% on standard variable rate loans benefited less, at least in part because banks have not fully passed through the rate cuts. |
| However, in the context of the other data, it suggests that if the Bank has to raise rates again, it could have a seriously detrimental effect on the ability of many borrowers to keep up with their payments. | However, in the context of the other data, it suggests that if the Bank has to raise rates again, it could have a seriously detrimental effect on the ability of many borrowers to keep up with their payments. |