How is the average person doing financially?
More than 5,000 people in the UK were recently surveyed about how they felt about money. 48% of people said that they worried about money at least once a week, and for 16% of the population, money was a daily concern. One of the best ways to conquer financial worry is to talk about it, and get help and advice from the right places. Yet in the survey 52% of people said that they really struggle to talk openly about money. Whether it’s about savings, investments, or credit cards, the outlook is good for the average person in the UK, and there are plenty of ways to get the help needed and really make the most of your money.
According to research done by The Money Charity, the average person in the UK has £6,756 in savings. The figures vary around the country, but the average Londoner has £28,978 in savings. UK residents save on average £105 a month. This money is being kept for emergencies, or to fund something important like a house or a car. The right savings account, bond or ISA can really make a difference for those who are trying to save, and one can shop around for the best interest rates. These are often found not with high street banks, but instead with online banking providers that specialise in savings accounts.
Loans and credit cards
The Money Charity found that the average UK debt is £33,006 per person, this includes mortgages, loans and credit cards. It is important however to consider that not all debt is negative. Having a loan or credit card and regularly paying it off every month can help build up a credit rating, improving its score. A loan can be quick and easy to arrange online, though there are always risks to consider. Sites advertising products such as fast loans UK offer one way to get the funds needed quickly. 80% of adults have loans and credit cards, and it is a relatively normal way to fund purchases and meet everyday household expenses, and as long as the repayments are made in a timely fashion each month (if not, this type of loan can quickly become a problem).
Looking to the future
It has been predicted that interest rates are set to rise next year. The Bank of England sets the base rates for interest and this changes in line with the rate of inflation. The average savings account has an interest rate of 0.1%, and it is expected that this will increase to 0.25% and possibly go up to 0.5%. This is good news for anyone trying to save for something important. There has actually been a decrease over the past year of 8.4% in the average credit card balance, so generally people are more aware of the levels of debt that they have, and are taking financial responsibility.
Things are looking up financially for the average person in the UK. By talking about loans, credit cards and savings, one can get practical advice and improve the outlook on money too.
The editorial unit