Finances worse for 40% of people (or those studied)

Graham_Devon

Almost 40% of households saw their finances deteriorate between July and August, according to a survey by the financial information company, Markit.

The study, of 1,500 adults, showed finances worsened at their fastest pace since February 2009, in the middle of the last recession.
Many reported a rise in debt levels and a fall in savings and income.

Just under 6% of households reported an improvement in their financial situation.

Markit uses a Household Finances Index (HFI) which it said fell for the third month running in August to its lowest since it began compiling it in early 2009.

It said available cash to spend fell by its fastest pace since the survey began.

Savings fell at their steepest amount for almost two and a half years.

Have already highlighted that this only includes those studied, before were told everyone else in infact ok.

This is not good news, though inevitable with rising costs / inflation.

I'm not really sure how we as a country can look forward to growth based on these type of figures, especially with mounting pressure on finances.

http://www.bbc.co.uk/news/business-14608763

As for pay rises that cause arguments..

August also saw the steepest drop in take-home pay for nine months, and this reduced income was then squeezed further by rising prices.

MFW_10Yrs_3

Our gas and electricity supplier just put through an inflation busting price hike. Things are going to come to a head if we have another harsh winter. Lots of families are going to have to choose whether or not to have their heating running.

MacMickster

The survey definition of finances being worse includes a drop in savings.

I don't suppose that spending on holidays in July would cause the level of people's savings to fall would it? At a guess I would think that around 40% of families may save for an annual summer holiday, so their savings would drop when that holiday is actually paid for and taken.

DervProf

MFW_10Yrs wrote: »

Our gas and electricity supplier just put through an inflation busting price hike. Things are going to come to a head if we have another harsh winter. Lots of families are going to have to choose whether or not to have their heating running.

Indeed. If not done already, it's time to invest in loft/cavity wall insulation and a few thicker jumpers. I'd also advise a few people that there is no need to have your home feeling like the tropics in the cold weather. Wear some slightly warmer clothing and keep the thermostat around 18 degrees. I dislike going into customer's homes when it's like stepping into an oven.

Graham_Devon

MacMickster wrote: »

The survey definition of finances being worse includes a drop in savings.

I don't suppose that spending on holidays in July would cause the level of people's savings to fall would it? At a guess I would think that around 40% of families may save for an annual summer holiday, so their savings would drop when that holiday is actually paid for and taken.

What about the debt that's risen?

Mallotum_X

MacMickster wrote: »

The survey definition of finances being worse includes a drop in savings.

I don't suppose that spending on holidays in July would cause the level of people's savings to fall would it? At a guess I would think that around 40% of families may save for an annual summer holiday, so their savings would drop when that holiday is actually paid for and taken.

I doubt it would be as simple as that.

Most of the key costs we all have have risen, with some such as gas, electricity and travel way above inflation.

Pay rises, if at all are not keeping up, we just had a couple of percent this year.

In the short term most of us are being squeezed, so im suprised only 40% would think they are in a worse position than a month ago.

MacMickster

Graham_Devon wrote: »

What about the debt that's risen?

Some have been known to indulge in the very un-MSE practice of borrowing to pay for a holiday.

Seriously, I think that this is yet another bit of non-news.

Graham_Devon

MacMickster wrote: »

Some have been known to indulge in the very un-MSE practice of borrowing to pay for a holiday.

Seriously, I think that this is yet another bit of non-news.

Okey dokey. There is lots of non-news around, dependant on your outlook. Hence your "yet another".

I'd prepare for yet more non-news to head your way!

michaels

According to the Economist (link) GDP per head remains 6% below 2007 peak (or 13% compared to what it would have been if 2007-11 had followed the 'normal' trend of 1997-2007). I can't understand how people can look at these GDP numbers and then be surprised that people feel worse off - similarly I can't understand how the Labour party can expect there to be no contraction in social benefits in the light of the economic reality.

C_Mababejive

I wonder who the other 60% are who seem to have been totally unaffected in being shafted for the mistakes of others? Maybe the other 60% are the ones who made the mistakes which led to 40% of us paying for it whilst they profit from it?

StevieJ

Almost 40% of households saw their finances deteriorate between July and August, according to a survey by the financial information company, Markit.

Probably just been on holiday