One million more households in danger of debt says Legal & General MoneyMood Survey.
11 October 2011
The latest MoneyMood Survey from Legal & General shows a million households are worse off now than they were just 1 year ago. The research shows a marked drop in "Expense Cover", the number of "financially stable"households who say they have some money left after paying bills each month. This indicates that, nationwide, the number of households scrimping to pay bills or sinking into debt has risen by just over a million (1,050,000) compared to 2010.
MoneyMood Survey ® Expense Cover 2011 versus 2010 - note to view the charts please click on the download file link on the right.
The last three years have clearly taken a toll on the number of "stable" households who can claim expense cover. In September 2007 six out of 10 households across the UK said they had expense cover "some money left over after paying bills and debts". By the end of September that had fallen to less than half of households (45 per cent) a drop of around 3 million in 4 years.
Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; "Right across the country, no matter where they live, people are saying that they’re struggling to cope with household bills. Our latest figures indicate over half of UK households, around 11.5 million homes, are "scrimping" - budgeting on a fine balance between managing to pay bills and sinking into debt."
Mark added: "The continuing financial turmoil has created millions of households, for whom just paying bills has become a real struggle. In our last survey (August) over half of households questioned said they were contemplating using some savings to meet mortgage payments if rates go up or considering cashing in some savings to pay rising household bills and high fuel costs."
Regional data - MoneyMood Survey ® Money left over at the end of each month after paying bills and debts - note to view the charts please click on the download file link on the right.
|Region||Population (million)||% Total||Households (million)||Worse off in last year||Struggling to cover expenses %||(000’s)|
|Yorks and Humber||5.3||8.5||1.8||Positive 144,000||48%||864|
|E Midlands||4.5||7.5||1.6||Positive 80,000||52%||832|
|N Ireland||1.8||3.0||0,6||Not audited||Not audited||N/A|
Source – Office for National statistics 2010, Legal & General Estimates, MoneyMood survey.
Survey - methodology:
Research for the Legal & General MoneyMood Survey was carried out by TNS Omnibus. Telephone interviews were conducted among a nationally representative sample (in GB) of around 1,000 adults (age 18+) between 24-26 September 2010 and 23-25 September 2011.
Notes to editors
1. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2011, we were responsible for investing £370 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
The Legal & General MoneyMood Survey ® (registered by Legal & General Group plc).
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