People ‘cutting back on vital services’ due to debt

People ‘cutting back on vital services’ due to debt

Many households are planning to cut back on vital financial products, even though it may leave them exposed or vulnerable, a new survey has claimed.

Research from American Express has revealed that 48 per cent of Brits are cutting corners on services such as health insurance and child trust funds.

It found that although people are still looking for a last minute holiday deal, 24 per cent plan to axe travel insurance in a bid to save money.

In addition, five per cent are going to stop paying monthly amounts for home and car insurance.

Head of insurance services Chris Rolland said that this is not a good form of debt management.

“Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times,” he remarked.

A recent study from uSwitch warned that five million cars are currently at risk in potential flood areas across the country.