31% of Britons with borrowings have admitted that they have considered not making the first monthly repayment of the year on their credit card, loan or mortgage.
The astonishing statistics from Fairinvestment.co.uk released last week show the impact of recent job losses, individuals’ reduced spending ability and the real state of the country’s personal finances.
Two thousand people took part in the survey, which found that 62% of Brits have noticed their finances taking a hit as a result of the adverse economic conditions.
When asked what one monthly payment they would default on, 20% said credit card, 7% said loan repayments and 4% said their mortgage.
Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, said that the results show how difficult the current financial environment is for Britons.
She explained: “It is important that people prioritise their outgoings and try to reduce their debt as far as possible, so cutting back on non-essentials like saving contributions make sense, especially as savings rates continue to fall.
However, the fact that almost a third of Brits would have to cut back on essential payments like loans, credit cards and mortgages as their first port of call suggests that they have already cut back on non-essentials like gym memberships and savings account deposits.
Rob says... "There is help out there for people who have reached the point where they have to cut back on essential monthly payments. If this is the case, then it is vital to seek debt advice from a qualified debt adviser who can talk to you about the whole range of options available, including budgeting, debt consolidation and IVAs."
