Brits now more likely to require debt help than 3 years ago?

People in Britain could be more likely to require debt management help than they were three years ago, new research has suggested.

The latest MoneyMood Survey from Legal & General has revealed almost three million households in the UK are no longer able to save the amount of cash they were able to put to one side 36 months earlier.

It showed 2.8 million are now in a worse financial position than they were at this time and there has been a marked reduction in ‘expense cover’, which relates to the number of families who have cash to spend after settling their bills every month.

In September 2007, it was found that six-out-of-ten households had funds to utilise after debts and essential living costs were paid.

However, at the end of the same month this year, this amount had fallen to just half of all homes.

Moreover, the problem appears to be visible across the board, as people living in different areas of the nation reported they are less well-off than they were three years ago.

The statistics highlighted around 11.5 million homes in Britain are attempting to survive on a budget that involves a fine balance between being able to pay bills and falling into debt.

Mark Gregory, executive director of savings at Legal & General, confirmed: “Right across the country, no matter where they live, people are reporting that they’re worse off now than just a few years ago.”

A recent study carried out by HSBC found many individuals in Britain do not have an adequate financial security net in place in the event that they were forced to stop earning.

By Joe White