Household Spending Plummets Amid Job Uncertainty

New research has indicated that fear of job losses caused UK household spending to drop at the fastest rate for nine months during October, whilst debt is believed to have risen for the first time this year.

The uncertain economy is having a direct impact on consumer confidence, with the threat of further job losses and rising inflation putting added pressure of families across the country.

According to Markit - a financial information group, one in four people felt that their finances suffered last month and 45 per cent expect their situation to get worse as we approach 2011.

The major worry is job security; particularly for those working in the public sector, who are facing the outcome of the Government’s spending review. Nearly a quarter of people who took part in the survey believed their job was less safe than it was in September.

As a UK debt advice charity, we regularly receive calls from people who are struggling financially following a job loss or pay cut, and are worried about their spiralling debt problems.

We’ve also seen increasing numbers of people contacting us to seek advice on household budgeting. Many of which are financially secure at present, but would like to make some savings, so they’re better prepared for any unexpected change in circumstances they are faced with in the future.

Impartial debt advice and support is available from our helpline team on 0800 043 40 50.