What you need to know about the state of the average person’s finances in the UK

Posted: Dec 1, 2021 10:21 PM

UK, nearly a third of the workforce have seen their incomes decline in 2021. As a result, UK households spend much less on goods and services. On average, citizens reduced their spending by 19% per week. High-income households that spent more on travel before the pandemic also saw massive spending cuts. Due to the restrictions, fewer high-income households use their disposable income. They cannot travel or attend events with large crowds, which has contributed to the reduction.

Meanwhile, lending is on the rise as 8.9 million citizens borrowed more than usual in December 2020. Loans and credit have primarily been the coping tools most UK households are currently using. These include payday loans, credit cards, debt consolidation, home refinancing, and more.

Quick Payback Loans in UK

Since people earn less, they face more financial hurdles before payday. According to Statista, 55% of citizens said they had difficulty with the price of food most. Energy costs come in second, with 37% of people having difficulty paying their utility bills before their troubleshooting. To cope with the situation, many households resort to quick loans, such as My Quick Loan, which is a wise and practical way to solve short term financial problems.

Credit card

Getting a loan is not the only way for citizens to cope in UK. As of January 2021, 62.8 million credit cards were in use on the continent. Store cards are also a popular choice, which are specialty credit cards for specific businesses. These plastic cards also carry an interest rate risk if the cardholders are unable to repay them. Yet the interest on a credit card is often much lower than that on a payday loan. This is why so many citizens choose to use plastic cards to bridge the gap in their regular income. Citizens can also use credit cards to purchase goods anywhere, including online or over the phone.

Resources for dealing with financial stress

Financial strains cause a lot of stress. It can cause mental health issues such as anxiety and depression. Alcohol consumption also increases as money tightens. The NHS UK and Citizens Advice are exemplary resources for concerned citizens. Both websites have straightforward suggestions for dealing with financial worries. They also provide resources to find a job and deal with debt.

While millions of people struggle with finances in the UK, the help is out there. More and more people are using payday loans, credit cards and other methods to allay their money worries. Still, there is hope, as fewer people report struggling to make ends meet and continue despite the challenges.

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