Survey may emphasise debt consolidation need

The extent to which some people may benefit from debt consolidation measures to free up some cash may have been emphasised by a new survey.

MyVouchers.co.uk asked consumers the question: “When you are paid each month, how much money do you have left after your outgoings?”

The answer to this was “nothing” in 21 per cent of cases, which not only means many consumers are unable to enjoy treating themselves occasionally to some of the finer things in life, but will also have no leeway in the event of costs suddenly increasing.

And the overall state of finance is a poor one for half the respondents in the survey, with 37 per cent describing their circumstances as “bad” and 13 per cent “very bad”.

By contrast, less than half that number said their finances are presently very healthy, with 19 per cent saying they were “good” and just four per cent “very good”.

Responding to the findings, chairman of MyVoucherCodes.co.uk Mark Pearson said they were “quite shocking”, adding; “Times are unfortunately tough, despite the recession having been and gone and consumers are still struggling to make ends meet.”

People who have no spare cash may include those owing a lot of money, such as those with deep credit card debt.

Debt consolidation such as through switching to cheaper loans with lower interest rates may be one way consumers can reorganise their finances to reduce monthly outgoings and free up extra cash.

The level of consumer debt run up in recent years has been “unsustainable”, business secretary Vince Cable commented in a speech at the GMB union conference in Brighton this week.

By Joe White