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Consumer Credit

British adults’ struggles to payday at record lows – R3

By CreditMan Monday, February 15, 2016

Fewer British adults say they are struggling from payday to payday than at any point in the last six years, according to the latest survey of over 2,000 British adults by insolvency trade body R3 and ComRes.

Just over a third (36%) of British adults say they often or sometimes struggle to payday. This is well down from a record high of 51% in May 2012.

A joint record low of 39% of British adults say they are at least fairly worried about their current level of debt. Debt worries were last this low in January 2012.

Phillip Sykes, president of R3 says: “Low inflation, low interest rates, and some real wage growth have helped British personal finances into an increasingly better shape. We’re seeing record low levels of economic pessimism and struggles to payday. Debt worries are down too.”

“But the same problems remain. Although numbers are at a record low, at least a third of British adults consistently struggle to make it from payday to payday. Similarly, around two-fifths of British adults, equivalent to nineteen million people, are worried about their debts.”

“Although personal insolvencies have fallen back to pre-recession levels, they are still well above where they were before 2003 when insolvency numbers started to grow rapidly. With so many people worried about their debts or struggling financially, relatively high numbers of personal insolvencies are not surprising.”