Escalating food costs, mortgage repayments and the price of fuel are the biggest financial fears for consumers according to the latest research from online credit information expert, Equifax.
In its survey of over 600 consumers, conducted at the end of February 2012, over a quarter (25.6%) said their biggest financial fear for this year is the rising cost of food. This was closely followed by worry about not being able to make their mortgage repayments (24%) and the increase in fuel costs restricting car usage (14.3%).
Neil Munroe, External Affairs Director, Equifax said:
"These figures probably won't surprise many people as they continue to manage on salaries that haven't increased for a year or more, whilst food and fuel costs have risen significantly.
"But this emphasises how absolutely vital it is for consumers to have a complete insight into their financial commitments so that they can reduce the chances of getting caught out."
When Equifax asked customers if they felt financially secure at the start of 2012, over half said no. And the main cause of this was the rise in the cost of living (71.2%). However, not having any savings to fall back on (55.9%) was also cited.
In addition, over a third of consumers said that up to 75% of their monthly wages is already accounted for on payday. Nearly half said they have less than 5% or no funds left with a week to go before the next payday.
Neil Munroe continued:
"Our latest data shows the scale of apprehension amongst consumers, undoubtedly for many prompted by the fact that they have had a pay freeze for the last year or have not yet had a pay rise this year.
"It is more important than ever, therefore, that consumers ensure they set budgets and make sure they are keeping on top of their debt and meeting their credit repayments. The worse thing they can do is bury their heads in the sand, as any missed payments now could impact their ability to get new credit in the future."
