A report has highlighted the ongoing impact of the cost-of-living crisis on household finances and individuals’ ability to meet essential needs. Research conducted by consumer group Which? has revealed that around 8.1 percent of mortgage holders and one in seven renters in the UK failed to make essential payments such as housing, utility bills, and credit card or loan repayments in the month leading up to early March.
The study, which has been tracking data since April 2020, found that the rate of missed payments for mortgage holders was the third-highest recorded by Which?, with a concerning increase in missed utility bills and credit card or loan payments. Additionally, more than half of individuals reported making adjustments to cover essential spending, such as cutting back on essentials, dipping into savings, selling possessions, or borrowing.
Looking at the economic outlook, just over one in five individuals are optimistic about the economy improving in the next year, while half believe it will worsen. These findings are indicative of the prevailing concern and uncertainty surrounding household finances and the wider economy.
One participant expressed concerns about the rising cost of essential everyday items and the inability to secure a pay rise, while another individual is optimistic about an improvement in their financial situation due to forthcoming pay rises.
Consumer group Which? has called for companies to provide more support to individuals who are struggling to make payments and to ensure that they are offering good value for essential goods and services. Rocio Concha, from Which?, has emphasized the urgent need for action to address the challenges faced by struggling homeowners and renters in meeting their financial obligations. She expressed her concern over the high levels of missed payments and underscored the necessity for immediate intervention.
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