Most Britons worried about money
Two thirds of British consumers have financial worries, according to a new poll by high street lender Metro Bank.
In a recent survey of 2,000 Britons, the challenger bank found two thirds of respondents admitted to financial worries, with many stating they are now reliant on a combination of short-term financial solutions.
“Short-term money solutions could lead to a lot of financial heartache later,” warned David Thomasson, managing director of banking products and digital at the bank.
“It is worrying to hear that six in 10 people are suffering with mental health issues due to the cost-of-living crisis.”
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The survey found that 18 per cent of respondents were planning to halt prepayment direct debits and standing orders on energy bills to save money.
Other findings in the data included news that 10 per cent of those polled were already borrowing money from family or friends, while 10 per cent are using payday loans as a source of income.
More than one in five people are now withdrawing money from savings accounts and 12 per cent of respondents admitted that they had taken money from their children’s bank accounts.
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The research compared different age groups’ approaches to combatting the cost-of-living crisis.
35 to 44 year olds are more likely to use credit cards to cope with rising prices, with 23 per cent of this age group relying on credit cards for basic expenses.
In comparison, younger generations are more likely to depend on buy now, pay later schemes. 17 per cent of 18 to 24 year-olds are using buy-now-pay-later schemes to spread out their expenditure.
These short-term money solutions have proven ineffective on their own. As a result, 47 per cent of people are combining two or more short-term solutions to ease financial worries and cope with the rising cost of living.
“Some of those attractive ‘quick fixes’ could lead to longer term issues,” Thomasson said. “The next 12 months are going to be difficult for many households, but everyone should try and take a moment to consider the most appropriate options that deal with their most immediate financial needs.”
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