Are you in control of your Debt?

17-Feb-2010

A new poll by Asset Management Group F&C shows that more than 50% of Britons between the ages of 35-45 do not feel fully on top of their finances.  Out of the 3,000 respondents to the survey, just under 50% said that they felt in control of their finances, 36% said that they felt 'a degree of control', and worryingly, 14% claimed to not feel in control of their financial situation at all.

Planning for the Future

61% of male respondents expressed confidence about their finances, compared to 43% of women.  This confidence is likely to be due to having planned for the future, since men were more likely to have made a will and 13% more likely to have emergency cash saved up.  Women however, were 12% more likely to have life insurance.

20% of men and 25% of women are relying on the State pension to keep them in old age, although a third of respondents of both sexes are contributing to an occupational pension scheme to supplement the State pension that they will eventually receive.  38% of women admitted to being 'not at all confident' that their retirement provisions would be sufficient to maintain their lifestyles in retirement, compared with 23% of men.  

Worrying about Debt

Out of those respondents with debt, almost a third were struggling to meet repayments, or were at least concerned about their level of borrowing.  Respondents in Northern Ireland seem to be the most worried, with 44% worrying about their debt levels.  

Scott Stevens, Head of Global Wholesale and Marketing at F&C Investments, said: "While some of the results of this survey are encouraging, there is a real need for people in this age group to sort their financial lives out. It is unthinkable that almost a quarter of people are still planning to rely on the State pension, when it is entirely possible this safety net will not even exist in its current form by the time they retire. And with life expectancy continuing to rise, leaving it until later middle age to start saving for retirement is not a viable option."

The F&C have written a Financial Life Guide for 35-45 years old, designed to help people plan for a more secure financial future.  You can download this guide here. 

Top Tips for taking control of your Debt

*  Know how much you owe 

It might be that the problem is actually smaller than you have been imagining, but you won't know until you sit down and work out exactly how much you owe, and to whom.  It might be a painful step, but you can then work out a payment plan for paying back the money that you owe.  Pretending it is not happening will only result in a gradual increase in your debt.  Take back control of your finances.

* Use our Debt Payoff Calculator

Use our free 'Time to Pay Off Debt Calculator' to work out how long it will take you to pay back your debt.  You can choose different amounts to set aside for paying back your debt each month, to work out where your financial priorities should lie. 

*  Speak to an Expert

If you would like to speak to an experienced debt adviser about your debt, you can request a free callback by filling out our short debt form.