Personal finances in the UK have “sunk to all time lows”

Commentary | 03/10/19

10.5 million Britons are in the worst financial position of their lives

New research commissioned by FairMoney.com has revealed that an astounding 10.5 million Britons are in the worst financial position of their lives. The research, entitled ‘Brexit Broke Me’ has also found that over half of Britons (53%) have disposable incomes of less than £0. This is a dire situation for many households as the gap between the ‘haves’ and the ‘have not’s’ is increasingly widening and the aggressive nature of current regulation forces more consumers into financial hardship by default.

The outlook for the 9,000 Thomas Cook former employees is especially bleak. These workers are particularly vulnerable as they have been left with no compensation for their loss of jobs. Fair Finance has rightly highlighted that many of these former employees are having to turn to friends and family for cash “in a bid to stave off financial woes.”

Sudden income shocks such as this can have a disastrous effect on household finances especially if individuals and families are already financially constrained and do not have access to emergency, responsible credit. It is encouraging that organisations such as Fair Finance are fighting hard for consumers to have freedom of choice from different lenders. As Dr Roger Gewolb, Founder and Executive Chairman of FairMoney.com warns:

“In the way that Thomas Cook has unravelled before our eyes, if further collapses of major employers occur, we shall unfortunately see the extent to which Britons are struggling to make ends meet. Personal finances across the UK are being crippled, yet there seems to be very little being done to secure people’s futures…

“The…lack of provisions for fair finance….means that people in dire need of small, doorstep loans have reduced accessibility…”

As representatives of the short-term credit and wider consumer credit market, we absolutely must continue to campaign to Protect Access to Responsible Credit. There has never been a more urgent time or need to maintain consumer access to responsible credit in order to assist with the peaks and troughs of expenditure and everyday life.

CCTA will be at the front and centre of Protect Access to Responsible Credit (PARC) campaigns. Our National Conference on 7th November will be a clarion call to all our Members to get behind the PARC programme and fight for the financial rights of all consumers.