Four out of 10 think 2018 will be tough financially

Michael Lloyd

January 8, 2018

Four out of 10 people expect 2018 to be a financially challenging year with 11% thinking maintaining mortgage and rent payments will be their main financial concern for 2018, according to research from GoCompare.

The comparison site also found that 12% admitted to being ‘seriously worried about their finances’ in the year ahead.

Georgie Frost, consumer advocate for GoCompare, said: “The level to which people are worried about their financial situation and job security in coming year is a real concern.

“We know that money worries can impact on our relationships, our work and our mental health, causing us to make poorer financial decisions which in turn could make our situation worse.

“With the rising cost of living and most of us unlikely to see a pay rise any time soon, it’s no surprise many are expecting to have to make sacrifices.

Just under half (49%) of people said they need to try and reduce their outgoings in 2018.

About one in ten expect to carry credit card debt for most of 2018 and 7% expect to rely on credit cards simply to make ends meet.

The rising cost of living was of greatest concern to those aged 65 and over with 73% citing it as their biggest financial worry in 2018.

Young adults (aged 18 to 24) were significantly more concerned (35%) than the UK adult population as a whole about the ability to find sufficient work.

Frost added: “But while there will be some who simply cannot find areas to make any savings, the vast majority of us could and it doesn’t have to lead to great hardship either. Why pay more than you need to for your utilities or insurance?

“Just twenty minutes on a site like GoCompare, which makes it easy for you to check from a wide range of products and services, could set you on a path to ensure you are thousands of pounds richer by the end of the year.

“Providers are constantly review their pricing, so even if you think you’re currently getting a good deal on your financial products it’s worth shopping around on a regular basis to find out. It might be the best New Year’s resolution you have made!”

The main financial concerns for 2018 were found to be the increasing cost of living for 58% of UK adults and the impact of Brexit for 29%.

Some 27% thought not saving or investing enough was their biggest worry while 17% reported it was saving enough for retirement.

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