A vast number of Britons are discovering that they are coming under financial strain due to the monetary problems suffered by their friends or family, a new piece of research highlights.
In a study released by Axa, some 82 per cent of consumers who have agreed to help a loved one manage money due to their problems in making payments on bills, plastic cards, loans and mortgages have in turn had a bad experience because of it. According to the company, just over a quarter (26 per cent) of those providing help with money to a friend or relative have gone on to fall into the red themselves. Meanwhile, 39 per cent of people have had to dip into funds invested into their savings pot, while a fifth have given money that was originally intended for somebody else.
An estimated 448,000 have also developed mortgage arrears, with five per cent of respondents discovering that their address has been blacklisted although they do not have money problems. As a result, such people may find their access to cheap loans in the future is impaired. Meanwhile, 2.5 million Britons report that helping someone with their financial problems has had a negative impact on their children as they are either unable to provide for them in the manner they are used to or because their offspring have suffered from emotional problems.
Steve Folkard, a spokesperson for Axa, said: "Money worries need to be recognised as a major social issue. Just as the discovery of passive smoking caused us all to re-evaluate when we light up a cigarette, we believe that this research should prompt more people to think about getting their finances in order. We all know about the debt mountain, house price rises and the state of the financial markets. But this is the first time that someone has identified how people in serious financial need can affect those around them as much as they can themselves."
He added that if consumers find themselves developing problems meeting repayments on mortgages, secured loans and utility bills as a result of helping loved ones with debt then they should seek help from a professional advisory service such as Credit Action or Citizens Advice.
Research from the firm also showed that the members of the public see financial concerns as being the largest social issue that has a direct effect on them. Such anxieties were cited by 43 per cent of adults, a higher proportion than the likes of terrorism, climate change and immigration. However, just over a fifth (21 per cent) reported that money worries have the greatest impact on Britain as a whole.
With the festive season approaching those consumers who are concerned about their capacity to manage their money may wish to apply for a personal loan. Earlier this month, research released by CreditExpert indicated that 29 per cent of Britons report that their current monetary situation is under more pressure than it was this time in 2006. Managing director Jim Hodgkins reported that more people are due for a "financial fork-out" this Christmas with a cheap loan one possible way of providing help with such difficulties.
Author Resource:-
Abbi Rouse writes for All About Loans. Our visitors are offered advice and information all about loans, they can also apply online for UK tenant loans and cheap loans for any purpose, including self certification loans for the self employed.
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