Debt concerns to mount in 2011?

The number of people requiring debt management in 2011 as they continue to struggle to keep on top of their finances could be about to escalate, new research has suggested.

Carried out by Gocompare.com, the study – which included 3,000 UK adults – revealed 61.1 per cent of those questioned expect next year to be a very difficult time financially.

And it appears the imminent rise in VAT is among the biggest concerns for those questioned, with 22.1 per cent admitting the increasing cost of living and elevated bills are their biggest worry.

The VAT rise of 2.5 per cent is to come into effect on January 4th and the investigation found many individuals have reservations about how this will affect their spending habits.

Indeed, it has been shown a lot of consumers have already started delaying big purchases over the last 12 months.

More than a quarter – 25.53 per cent – said they have avoided moving house, while 21.2 per cent elected not to buy a car and 30.37 per cent refrained from taking a holiday abroad.

The study also found job security is a big concern for many Brits in 2011, as 31 per cent fear they may lose their job and are worried they will not be able to find enough work to maintain their standard of living.

John Miles, business development director at Gocompare.com, commented: “It looks like many of us will be tightening our belts even further in 2011 as money woes continue into the new year.”

The findings come after moneysupermarket.com noted 17 million UK adults worry about their monetary situation on a daily basis.

Posted by Amy White