IVA need to grow as Britons fail to respond to financial concerns?

Britons are concerned about the economy and their financial prospects but tend not to be reacting to the situation to make things more secure for themselves, it has been stated.

A study by HSBC found 76 per cent of people are concerned about the way the UK economy is heading in the near future, while the same number were worried about their own personal financial prospects.

Yet despite this, 68 per cent of people have not adjusted their approach to money to reflect this, whether this be in terms of their approaches to saving, spending or borrowing.

Among the survey findings were the revelation that while 19 per cent have cut spending in response to the economic crisis, 15 per cent have raised it.

It also found 26 per cent of people were as willing to borrow as before and five per cent were prepared to go into further debt, something some may end up suffering for if they lose their jobs or suffer reductions in income for other economic reasons.

Head of savings at HSBC Richard Brown said: “This suggests people either have their heads in the sand and do not realise the need to change, or that they have simply decide to stoically ride out the recession by refusing to alter their ways.”

Mr Brown is not alone among experts who have recently suggested the British public has not learned how to handle money well enough.

Founder of finance website Moneymagpie.com Jasmine Birtles recently said people were in a bad situation because “we have ignored basic principles of money management”.

By James Francis