Money is biggest concern for millions of Brits

For 3.4 million Britons, money is the biggest concern in their life, with nearly a fifth (18%) worrying about money on a daily basis, and nearly a third (30%) fretting about money several times a week, according to research from Alliance & Leicester Current Accounts.

Not surprisingly, at certain times in the year our money worries escalate - with half of those who worry about money admitting money worries are triggered by the costs of Christmas and New Year. Four in ten (40%) people worry about money in the run up to a holiday, whilst a third (33%) find the run up to pay day the most worrying time. For many, it’s simply a case of paying the bills, or lack of budgeting skills that set minds racing.

However, for some, taking action to cut back on spending or to raise additional cash is the best way to keep money worries at bay. Around 21 million (62%) Britons cut back on luxuries such as eating out or going on holiday, whilst nearly 13 million (37%) sell off unwanted belongings. Nearly 12 million (34%) people get a second job or work overtime.

But still, despite the amount of time and effort we spend worrying about our finances, many people are still taking no action, and burying their heads in the sand: over a third (37%) of those who worry about money admit they avoid or have avoided checking their bank balance or opening their bank statements.

What’s more only half (50%) of those who worry about money say they would choose to stick to a strict budget to get their finances back on track and in fact 2 million (6%) actually admit their reaction to money worries is to add fuel to the fire by spending even more!

Despite the fact that many people have money concerns and are trying to make their money stretch, further research reveals that 45% of bank account customers have never switched banks. In fact 60% admit they have been with the same bank for ten years or more.

Andy Bayes Head of Current Accounts at Alliance & Leicester said: “Money is obviously a topic at the forefront of most people’s minds. Regardless of whether money worries stem from managing day to day finances or finding the money in the run up to special times of the year, it’s crucial people check that their bank account is working hard for them. Budgeting and making cut backs is one thing, but if people are earning low rates of interest on their hard earned cash, its time to switch to a better deal.

“Considering the time people spend worrying about money, and the lengths some will go to find more, it’s surprising to see that so many customers still remain faithful to the same bank they have been with for years, which pays very little in credit interest. Times have moved on, and although money will always be something we all wish we had more of, banking with a competitive account is one way to lessen the burden. What’s more, switching current accounts has never been so simple and easy so there is no better time than now to make the change.”

Alliance & Leicester’s Premier Direct continues to be recognised as the UK’s best current account, and recently won Moneyfacts Award for Best Current Account credit and debit interest for the last few years. The account range offers the following:

Premier Direct: An award winning current account for people who are happy to bank online or by phone, offering a credit interest of 6.5% AER on balances up to £2,500 fixed until 31 October 2008, and the UK’s lowest overdraft rate of 5.9% EAR – after an initial 0% overdraft for the first 12 months.

Premier 21: Available to those aged between 16-21 years who are in employment and able to fund the account with a minimum of £250 a month. A best–buy credit interest rate paying 10% on all balances of up to £1,000 fixed for at least one year from account opening. After the offer period, the account pays 4.75% (one per cent below Bank of England base rate). Customers also have a linked PlusSaver account paying 5.25% AER interest rate, Visa debit card, free mobile phone top ups via Mobile Banking and free mobile banking until the end of 2007.

To find out more information on Alliance & Leicester’s award winning Premier and Premier Direct current accounts, visit alliance-leicester.co.uk/currentaccounts.