Summary
There is a huge fear in the eyes of millions of
British households that they will lose their jobs while continuing to struggle
dealing with monthly bills and the fear of interest rates rising. A poll was taken that found 15 million people
were considered to be “living on the edge” regardless of the fact that the
economy was improving. Several households
are lagging on their bill payments or using credit as a “safety net” to resort
to for covering income gaps and afford necessary outgoings. Financial security has become a rising
concern among many households as 41 percent say they experience stress from
issues with money. Households are concerned that this burden will only get
worse as interest rates start to shoot up again over time and that there will
be an even faster increase in the amount
of people relying on credit to get by. Some say that even in the midst of economic
growth that the population of consumers is going to most likely face increased
cost in goods and services. Another
worry is that nearly 13 million households wouldn’t have the necessary savings
if they faced a quarter of a drop in their income. Actions to resolve this has
been to call on the government to implement a national debt strategy to help
more people feel more financial stable.
Analysis
There seems to be a lack of financial responsibility
among millions of households to balance their finances well enough so that they
don’t have to fall on credit when they hit rock bottom. Although since this is
becoming more of a trend in British households with the fear of losing jobs and
increasing interest rates, the credit welfare will eventually become overburdened.
Thus leads the nation to the social issue of so many not being financially
prepared for the future ahead of them. Families in these households are being
directly affected as they are finding it harder and harder to makes ends
meet. If they can’t afford to make their
payments on time it puts them at risk of losing their homes and possibly being
put out on the streets. Unless the
nation of Britain can develop a way to improve the families financial
resilience there only going to see more family households “pushed over the edge” as an outcome from
depending solely on credit as their financial life saver. There is an economic
and societal problem with debt here and a new policy needs to be implemented.
Published : April 10th, 2014
site: http://www.thisismoney.co.uk/money/bills/article-2601541/Over-15m-British-households-living-edge-despite-improving-economy-says-charity.html