The Bank of England has revealed that over half of households in the UK are continually struggling to pay off their debts from credit cards and personal loans. Debts are mounting up in many cases due to decreases in monthly earnings, which also resulting in less disposable income for many people. This is causing people to struggle when it comes to paying their bills, let alone paying off credit cards and making loan repayments.
The government’s spending review is causing concern to a huge proportion of people, with worries mainly being down to higher taxes on earning and spending as well as spending on services being reduced. It is not only working households who are nervous the cuts. Those who are now retired are worried about the effects that they will feel and the unemployed and long-term sick are expecting negative consequences from losing income and benefits.
Many people are trying to cope with the situation by a combination of spending less and either working longer hours or obtaining a second job as a way of earning extra income.