Double dip causes Brits to fear the worst for their finances
With news of the UK economy falling into a double dip recession last week, the comparison site MoneySupermarket.com asked its users how the news would affect their outlook on their finances.
A hefty 37 per cent of people said they were more concerned about their financial situation as a result of the recession, while a further 14 per cent said it will make them cut back on non-essential spending. Nearly a fifth (18 per cent) say they will look for ways to make their money to go further. Just a sixth (16 per cent) said the news of a recession won't impact them at all.
Kevin Mountford, head of Banking at MoneySupermarket.com said: "It comes as no surprise that many Brits are nervous following the news that Britain has edged back into recession, the first double dip since 1970. This combined with the surprise rise in inflation in March will have also impacted UK households struggling to cope with rising costs of living and lack of pay increases.
"The nation will no doubt be looking for ways to make every penny count and now is the time for households to use the opportunity to review all their finances and find ways to boost their income. UK savers have experienced real problems from high inflation and low interest rates and those looking to save need to make sure they are on the best deals possible to maximise any returns. The top paying savings accounts currently offer rates over six times that of base rate so by choosing these, you can reduce the impact inflation has on your pot. Even putting aside £10 a week could make all the difference to your emergency saving funds - vitally important should your circumstances change, for example, if you lose your job."
Consumers have had a tough few years and the news of a double dip recession may be the icing on the cake for many. A report from MoneySupermarket at the start of 2012 asked consumers which areas of their finances they were most concerned about this year. The report revealed that consumers are ten times more concerned about the cost of utility bills this year than they are about meeting their monthly mortgage payments. More than four in ten adults (43 per cent) said this was their biggest financial worry, whilst four per cent said their mortgage was their biggest financial stress. The rising cost of food (34 per cent) and petrol (33 per cent) also ranked in the top three concerns, over double that of concerns around being made unemployed or finding a new job (16 per cent) or not being able to save money (16 per cent).
Kevin Mountford continued: "Sometimes, sorting out your finances can feel overwhelming, but there are some very simple steps you can take to claw back some much-needed cash. Cutting back on non-essential spending can make a difference, and by reviewing all of your household bills and not paying over the odds for things like energy, car insurance and day-to-day expenses can save more than you expect. Switching to the best deals using MoneySupermarket could save over £1,000 for your family."