Tag Archives: spending

Financial Support Experts Raise Concern For Festive Financial Struggles As Average Household Debt Stands At £9,000.

Posted on by

 

As it’s revealed that the average household debt in the UK has reached £9,000, one financial support network has raised their concerns as we enter the festive season.

Typically the most financially demanding month of the year and with outstanding personal debt set at £1.451 trillion at the end of December last year, a correlation is expected between Christmas spending and financial concerns.

However with the average family spending between £530 and £682 on gifts, decorations, food and drink,  advisors in the finance industry have acknowledged this increased, short term demand for extra money at this time of year.

Financial advisor Kristjan Novitski from Peachy says, “At the end of the year spending is bound to rise a lot and people are in a need of extra cash.

“Although it is not sensible to borrow huge amounts of money with long term obligations or roll-overs, we acknowledge that for some, seeking support may seem like the only option.

“Whilst we would advise anyone taking out any loan to consider it carefully, choosing options where you decide at the beginning when exactly you pay the money back and in how many installments are always favourable. Peachy strives to implement this approach, and work alongside people to help them manage their finances flexibly and plan their future costs.”

So with almost a quarter of parents admitting they are planning to spend more on children’s presents this year than they did last, it is clear that tough economic times are not deterring British Christmas spirit.

And with this in mind, Peachy is encouraging people to follow suit and manage their finances over Christmas so as to avoid the headache of consolidating in the New Year.

 

Chancellor’s statement shows a glimmer of hope

Posted on by

George Osborne’s autumn statement was an opportunity for the government to return much needed confidence to the retail sector to boost growth. The Chancellor’s statement questions the conventional wisdom that countries can spend their way to economic prosperity, as reference to consumer spending is almost completely bypassed.

Last week’s concerning official figures published by the Office for National Statistics paint a worrying economic picture for the retail and distribution sector. The figures were followed by a warning from the British Retail Consortium that the ONS were in fact painting a far rosier picture than they were hearing from their members.

Kevin Flood, co-founder and CEO of Shopow, the UK’s largest social shopping site, commented, “For the British economy to start growing it is absolutely vital confidence returns. With conditions still fragile on Britain’s high street, providing greater support for SMEs and freezing the proposed fuel duty rise are welcome. The Chancellor’s proposed extension to rate relief for small firms and the implementation of a credit easing program to underwrite up to £40bn of small business loans will give smaller firms greater confidence. It will not however alleviate the strain on the purse strings of the consumer.

Kevin adds, “The Government needs to review its decision on VAT however to alleviate some of the economic gloom people are experiencing. A temporary cut in VAT would help give consumers confidence to get out and spend.”