Abacus Daily Debt News

Consumer financial health ‘remains generally weak’

Consumers in the UK may be best advised to seek debt management help as the financial health of British citizens remains generally weak, new figures have suggested.

Alliance Trust’s UK Financial Reality Index revealed monetary wellbeing improved slightly in the second quarter of 2010, but the organisation warned the debt burden has risen.

The index showed an increase from 77.3 to 77.7 - mainly driven by a degree of recovery in house prices and real earnings gains.

However, Shona Dobbie, head of the Alliance Trust Research Centre, observed: "Economic activity remains lacklustre, basic costs have risen and stock market growth has cooled."

The industry figure added the anticipated cuts in public spending could see unemployment numbers worsen over the coming months.

Caxton FX recently noted the Monetary Policy Committee’s last meeting did little to quell fears the UK could be heading towards a double-dip recession - meaning debt worries across the nation could increase.

By Amy White