Debt consolidation may be needed as many fear for finances after Budget

The Budget has not done enough to assure everyone their financial prospects will improve, a poll has shown.

A survey by consumer website uSwitch.com has shown 41 per cent of people are concerned about their own financial position, a number that may include many people in debt.

It also showed 36 per cent are less confident about their own finances than before the speech by chancellor George Osborne this week, while 20 per cent are concerned about their job.

And the majority of people (58 per cent) said now is not a time to make any major financial commitments or life-changing decisions.

However, some may wish to try to change things for the better by instigating debt consolidation measures.

Reflecting on the figures, uSwitch director of policy Ann Robinson said “there does seem to be some light at the end of the tunnel”, as the number feeling they will be worse off is much less than the 37 per cent who said this before last June’s Budget.

But that is not the whole story, she added, commenting: “However it’s clear consumers are still feeling the pinch and need to take better control of their own budgets.

“Stripping down living costs and household bills to the bare minimum will help consumers enjoy more disposable income.”

Debt consolidation may be one way people can achieve this, as well as by stopping spending on some non-essentials.

Similar comments were made earlier this week by head of banking at Moneysupermarket.com Kevin Mountford, who said many consumers are missing out on the chance to improve their own finances by acting on their personal budgets.

He said switching mortgages and savings accounts were among the measures people could take to improve their fortunes.

By James Francis