UK finances overweight as debts rise
Half of Britain 'financially overweight'
Wednesday, 12 Mar 2008 11:18
Some 46 per cent of UK adults are financially overweight – with 12 per cent financially obese.
Research by Lloyds TSB reveals large number of Brits have higher debts than savings, making them financially over-committed, or simply rely on debt.
However, 42 per cent of people are deemed to be financially fit – with lower levels of debt and the most suitable financial products for their needs.
Ian Larkin, managing director of consumer banking at Lloyds TSB, said: "Our physical health is something the nation is taking increasingly seriously.
"Most of us know our Body Mass Index (BMI), but our financial health seems to be less of a priority and often people have misapprehensions about the real state of their money."
The research also shows the reasons people put for not sorting their finances – and in many cases overpaying for their financial products.
For 27 per cent they do not know where to start, while 25 per cent simply lack motivation and 22 per cent say they cannot find the time.
A further 22 per cent said dealing with their finances was too difficult.
Lloyds TSB has now issued tips to get finances fitter:
- Look hard at spending Go through bank statements and see how much cash you really waste. Be honest with yourself.
- Set a budget and keep to it daily, weekly and monthly.
- Prioritise debts Pay off your most expensive debts first, such as on credit cards and store cards.
- Consolidate Look at personal loans to cover expensive credit card and store card debts. But you must stop using the cards once they are paid off, so you don't double your debt.
- Ask If you need help, ask your bank.