Consumers 'struggling with high cost of living'

Monday, 19 March 2012 2:51 PM

Despite reducing expenditure and paying off debts, many consumers in the UK are still struggling to make ends meet, new research has shown.

According to data from the Consumer Credit Counselling Service (CCCS), the average client in 2011 had just £44 left each month after meeting their basic living costs.

The report showed that demand for debt advice among those over 60 has risen by 15 per cent in the last three years as they struggle to service debts accrued some years ago.

In addition, the CCCS pointed out that rising unemployment and high rental prices are also putting a strain on people's finances.

Exploring options such as pawnbroker loans may stand people with short-term financial difficulties in good stead, as consumer affairs minister Norman Lamb said that people need to be proactive when it comes to their finances.

"We want people to be better informed and able to make good financial choices, taking back control of their money," he added.

According to the latest Aviva Real retirement Report, nearly half of those over the age of 55 are providing financial assistance to younger family members, donating an average of nine per cent of their annual income to loved ones struggling to make ends meet.
 

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