Member Article

Personal finance worries rising for North East adults, study shows

New research by insolvency and restructuring trade body R3 and ComRes has found that 39% of North East adults are worried about their personal financial situation.

The latest edition of R3’s regular Personal Debt Snapshot found that more than a quarter (27%) of adults in the region were fairly concerned about their finances, with a further 12% saying they were very (8%) or extremely (4%) worried about their situations.

More than one in five (22%) adults across the region think their personal financial situation will worsen over the next six months, compared to 16% back in February 2017 and 11% in September 2016.

Fewer than one in six (15%) North East adults believe their personal finance will improve in the next six months, a figure which has fallen from 23% in February this year.

For those in the region with debt worries, credit card debt (56%) was far and away the primary concern, followed by mortgage repayments (29%), student loan repayments (27%), overdrafts (24%) and bank loans (20%).

One fifth (21%) of North East adults also said they didn’t currently have any savings to fall back on should the need arise, while two fifths (40%) said they sometimes or often struggled to make their money last until their next payday.

Neil Harrold, chair of R3 in the North East and a partner with Hay & Kilner Law Firm, is advising anyone who feels their financial situation is starting to get out of control to take proactive steps towards putting things back in order.

He says: “Our members deal with financially-troubled individuals on a daily basis, and there is a greater range of options available today than ever before for helping them put their finances back on an even keel.

“However, to give themselves the best possible of re-establishing control over their financial situations, people with debt problems need to recognise their situation and proactively decide to do something about it as early as they can.

“The slow growth in debt worries is mirroring the period of gradually increasing economic uncertainty in which we find ourselves, and with this in mind, the proportion of people across the North East without a savings cushion behind them is a particular concern.

“Taking steps towards controlling your spending and debt levels, rather than putting your head in the sand in the hope that your problems will go away, will maximise your chances of putting things right in the shortest possible time.”

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