Half of households ‘less positive about their finances this year’

Almost half (48%) of UK households feel more pessimistic about their finances than they did this time last year.

According to research by Compare the Market, this has led to many cutting back on non-essential spending.

For example:

• 52% are dining out less
• 42% are spending less on clothing
• 39% are taking fewer or less expensive holidays

Others, meanwhile, are taking more drastic steps to cope with rising living costs.

For example:

• 63% are limiting how much energy they use during winter
• 37% aren’t putting any money into savings
• 64% are using their savings at least once a month to cover day-to-day costs

Over-55s feeling most worried

Compare the Market found that older people are particularly worried about their financial situation right now.

Figures showed that 58% of people aged 55 or above are feeling pessimistic about their finances.

That compares with just 33% of 25 to 34-year-olds and 39% of 16 to 24-year-olds.

Guy Anker, money expert at Compare the Market, described the findings as “concerning”, and said rising living costs have “forced many people to make tough decisions”.

Struggling households were encouraged to shop around for the best deals on household goods and utilities.

However, he acknowledged that it can be difficult to “get on top of your finances simply by switching”.

Mr Anker said that in that case, it can be “useful to create a budget and prioritise your most important outgoings in case you need to cut back elsewhere”.

Get on top of your finances

If you want to prioritise your spending and work out where you can make savings, then we can help you.

We’ve put together a handy guide on creating a budget, along with a free budget planner to get you started. 

We can also help you make sure you’re getting all the benefits you’re entitled to, and advise you on debt solutions if you’re struggling with repayments (some are free, for others there’s a fee).

All of our debt advice is free and impartial, and you can access it online 24/7 or over the phone during our office hours - 0161 518 8285.