Money worries wane for consumers

Consumers are feeling better about their finances
Consumers are feeling better about their finances
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The majority of consumers are no longer feeling the pinch when it comes to their finances, according to latest research.

New statistics from Halifax show that 80 per cent of people now believe their household is coping well financially.

And 25 per cent of consumers believe they are better off now than they were in 2014. While 57 per cent say they never run out of money before the end of the month - five per cent up since last year.

However 25 per cent still believe they are worse off now than they were last year although this is an improvement on the 31 per cent saying this last year. Just one in 10 of 20 to 29 year olds say they are coping badly which has almost halved since 2014.

Nick Young, Halifax Current Accounts, said: “While it’s reassuring that some consumers are starting to feel relief when it comes to the financial pressures they have faced over the past few years, one in four do still believe they are worse off than they were in 2014.

“As such, it is important for people to maintain a close watch on their finances, managing their budgets carefully in order to reduce the risk of surprises at the end of the month and make the most of their money.”

The research also shows that last year people in their 40s felt much worse about their finances than any other age group but this year there has been a significant improvement.

Now 74 per cent of this age group believe their household is coping well financially – an increase of six per cent in the past year.

Furthermore, 23 per cent are feeling better off than they did 12 months ago. 24 per cent of 40 to 49 year olds say they are coping badly with their finances, down from 28 per cent last year.

And despite women considering themselves more organised than men when it comes to money matters, they seem to worry much more than men about balancing the household books.

On average, more women than men say they are very organised when it comes to managing money day-to-day, that they always make sure they have money saved for a rainy day and that they are never late when paying bills. However, six per cent more women than men admit to buying things when they can’t really afford them and eight per cent more admit to dipping into savings to pay for these items.