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| Financial struggles with bills and debts 'worsen' | Financial struggles with bills and debts 'worsen' |
| (about 7 hours later) | |
| More than half of UK adults are struggling to keep up with bills and debt repayments, a major survey of people's finances has suggested. | More than half of UK adults are struggling to keep up with bills and debt repayments, a major survey of people's finances has suggested. |
| Some 52% of the 5,000 people questioned said they were struggling, compared with just 35% in a similar study in 2006, the Money Advice Service said. | |
| In Northern Ireland, some 66% said they were struggling. | In Northern Ireland, some 66% said they were struggling. |
| The effects of the financial crisis meant fewer were planning ahead and putting money aside for emergencies. | The effects of the financial crisis meant fewer were planning ahead and putting money aside for emergencies. |
| Cheap as chips? | Cheap as chips? |
| The Money Advice Service, a government-backed website, asked people a series of questions about their finances. It also followed 72 families over the course of a year to see how they managed their money. | |
| To assess the financial state of the nation, it is comparing the findings with a similar piece of work conducted in 2006 by the City regulator which, at the time, was called the Financial Services Authority. | To assess the financial state of the nation, it is comparing the findings with a similar piece of work conducted in 2006 by the City regulator which, at the time, was called the Financial Services Authority. |
| The banking crisis and the subsequent credit crunch have changed the way people view and cope with their financial situation, the survey findings suggest. | The banking crisis and the subsequent credit crunch have changed the way people view and cope with their financial situation, the survey findings suggest. |
| Individuals were worried about their ability to make their money last until the next payday, the advice service said. | Individuals were worried about their ability to make their money last until the next payday, the advice service said. |
| The English region where people are struggling to cope the most is the North West, the research suggests, with 60% of those surveyed finding it tough. | |
| This was in evidence in Crewe, according to the owner of a local fish and chip shop who has started selling "more affordable" fish strips and potato fritters. | This was in evidence in Crewe, according to the owner of a local fish and chip shop who has started selling "more affordable" fish strips and potato fritters. |
| Les Manning, who owns Les's Fish Bar and has been in business in the region for 35 years, said squeezed budgets were obvious just before payday. | Les Manning, who owns Les's Fish Bar and has been in business in the region for 35 years, said squeezed budgets were obvious just before payday. |
| "At certain times of the month, trade moves from the restaurant to the takeaway," the 56-year-old said. | "At certain times of the month, trade moves from the restaurant to the takeaway," the 56-year-old said. |
| "The money in your till goes from £10 and £20 notes down to £1 coins and £5 notes. When they get towards the end of the month, there is nothing left to spend, really." | "The money in your till goes from £10 and £20 notes down to £1 coins and £5 notes. When they get towards the end of the month, there is nothing left to spend, really." |
| 'Tough times' | 'Tough times' |
| Stretched finances meant many people were not putting money aside, such as saving for a pension. | Stretched finances meant many people were not putting money aside, such as saving for a pension. |
| In addition, there was no money ready for dealing with emergencies, even though a third of those asked said they had suffered a financial shock in the last three years. | In addition, there was no money ready for dealing with emergencies, even though a third of those asked said they had suffered a financial shock in the last three years. |
| Some 21% said they had experienced a large drop in income, while 42% said they would have to think about how to cover an unexpected bill of £300. | Some 21% said they had experienced a large drop in income, while 42% said they would have to think about how to cover an unexpected bill of £300. |
| The 2006 study raised concerns about how much people understood money matters. The financial crunch means that 84% of those asked said that they kept track of their money. Most who made a budget did stick to it. | The 2006 study raised concerns about how much people understood money matters. The financial crunch means that 84% of those asked said that they kept track of their money. Most who made a budget did stick to it. |
| Yet the latest survey found that 16% of those questioned were unable to identify the balance on a bank statement. | |
| "In theory, money management is easy - spend less than you earn and consider your future. But the difficulty comes when applying this in the real world," said Caroline Rookes, chief executive of the Money Advice Service. | "In theory, money management is easy - spend less than you earn and consider your future. But the difficulty comes when applying this in the real world," said Caroline Rookes, chief executive of the Money Advice Service. |
| "This report reveals just how difficult it is at the moment for so many of us, but also highlights ways we are adapting to manage financially." | "This report reveals just how difficult it is at the moment for so many of us, but also highlights ways we are adapting to manage financially." |
| A spokesman for the UK Treasury said: "We recognise that times are still tough for families, but Britain is holding its nerve, we are sticking to our plan and the British economy is on the mend. | A spokesman for the UK Treasury said: "We recognise that times are still tough for families, but Britain is holding its nerve, we are sticking to our plan and the British economy is on the mend. |
| "The government has taken continued action to help households with the cost of living, including cutting tax for 25 million people by raising the personal allowance and freezing fuel duty. | "The government has taken continued action to help households with the cost of living, including cutting tax for 25 million people by raising the personal allowance and freezing fuel duty. |
| "This report shows that, despite these tough times, managing your everyday finances effectively can really help to make things a little easier, which is why the government continues to support efforts to boost people's financial skills." | "This report shows that, despite these tough times, managing your everyday finances effectively can really help to make things a little easier, which is why the government continues to support efforts to boost people's financial skills." |