Half of UK consumers fear for finances

Research from comparison website Gocompare.com reveals the fear felt by UK consumers about the worsening economic climate.

With household bills, fuel and energy prices spiralling ever upwards, 49 per cent of UK consumers say they are concerned or very concerned about their financial situation for the next year.

In the survey of over 1000 people, 60 per cent of respondents said that reducing their outgoings was currently their number one financial priority. Saving, moving house, re-mortgaging and putting money aside for a pension were way down the to-do list for this year and just 1 per cent of respondents said their first priority was to invest in the stock market.

The nation's younger consumers feel most at risk from the economic downturn with nearly 65 per cent of 16 to 24 year olds concerned or very concerned about their financial situation compared to 39 per cent of over 55's.

Across the country, residents of Manchester and Southampton appear most worried with 58 per cent of respondents from both cities saying they were either concerned or very concerned about their finances.

Rising food, fuel and energy prices are hitting household budgets hard with one third of British consumers saying that at least £8 of every £10 of their monthly income is now spent simply paying household bills, while 6 per cent of respondents said that just paying bills accounted for all of their income.

With 60 per cent of cash strapped Brits saying that reducing their outgoings is at the top of their ‘to-do' list, over half of the consumers surveyed said that they will use a comparison website to help them find the best deal for their car insurance (55 per cent) and home insurance (52 per cent) in the next 12 months.

Hayley Parsons, Chief Executive of Gocompare.com said; "This research shows just how worried UK consumers are about rising prices and their personal finances. It's never been more important to save money wherever you can and shopping around for your home and car insurance is a great way to try and save money."

Gocompare.com's home insurance service enables customers to input their details once and compare more than 25 insurance brands including The AA, Bradford and Bingley, Budget, Endsleigh, esure, Kwik-Fit, MoreThan, Pearl, Saga, Swinton and Zurich home insurance.