Fear of finances puts millions at risk

Monday, 25 June 2007 12:00

Fear of finances sees millions of Britons put their heads in the sand and refuse to think about the state of their bank balance.

Figures from Sainsbury's Bank show 2.8 million UK residents suffer from this "money fear", and the bank is warning this could lead to much bigger problems to come.

"Our advice to people suffering from this condition is not to put your financial management off, problems can arise if you don't keep an eye on things," said Kevin Barrett, of Sainsbury's Bank.

"For example without regularly monitoring your statements you won't be able to identify issues such as identity theft. Take control of your finances now, look at your expenditure, plan your budget and by all means, seek advice or counselling if you need to."

Sainsbury's research shows almost two million Britons refuse to talk about their finances with their partners because they are afraid about how they will react.

Additionally one person in nine has left their bank account and credit card statements unopened at some point.

And this fear of finances affected the physical health of 3.3 million Britons in the last 12 months, with another 1.9 million saying it resulted in mental health problems.

One UK resident in 11 has seen their relationship with their partner adversely affected by their money fear.

To try and help people deal with their money worries Sainsbury's Bank offers the following advice:

• Don't ignore your finances. One of the biggest challenges is to face up to your concerns before they become a problem.
  
• Get into the habit of monitoring bank statements.
  
• Don't be put off by financial jargon - pick up the phone to your bank, or check out MyFinances financial jargon buster
  
• Prioritise your debts.
  
• Plan out a budget and stick to it.
  
• Look for ways to reduce or better manage your expenditure: Could you cut back on eating out or shopping, for example? Do you have the best credit card or most suitable loan?
  
• If you have a number of creditors and are finding it difficult to make your repayments, consider consolidating all your debts under one loan. This can help reduce the amount of money you are paying each month and make the process of repaying your debts simpler.
  
• If you are really worried about your finances, consider taking professional advice. The National Debt Helpline (tel: 0808 808 4000), Credit Counselling Service (tel: 0800 138 1111) and the Citizens Advice Bureau (contact your local bureau office by visiting www.adviseguide.org.uk) can all provide free advice.

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