Debt ‘holding back financial planning’

Debt worries are one of the main causes of people holding back from taking action to plan their finances, it has been claimed.

A Scottish Widows survey has found 17 per cent of people owning up to "neglecting" to plan their finances and of these, 21 per cent say they are too indebted to take any new action.

In addition to this, a lack of free time is cited by many, with 33 per cent saying they have less than two hours a day free for admin of this kind.

This could mean some are missing out on the chance to take out loans that could save cash and free up money for future savings and investments.

Savings expert for Scottish Widows Iain McGowan said people should find the time to take action to improve their financial situation.

He stated: "We know money is tight for many people at the moment, but spending a bit more time on their finances instead of ignoring the problems can only serve to make them feel more financially secure in the future."

There may be more reasons than ever for consumers to take action to improve their financial situation, following then publication yesterday (May 12th) of the Bank of England's quarterly inflation report.

It predicted economic growth will be lower than previously expected this year and next, while also forecasting Consumer Prices Index inflation will soar to five per cent this year and stay above the two per cent inflation target through 2012 as well.

Posted by Paul Thacker