2 in 5 British adults feel finances are in ‘state of chaos’

Nearly 2 in 5 adults feel their finances are in a state of chaos, as bills, taxes, food prices and transport costs put a strain on their income.

A poll of 2,000 UK adults found 27 per cent are currently in some kind of unsecured debt, estimating it will take them over three years to clear it.

As a result, 79 per cent of those are concerned about the amount of debt they have, although 87 per cent feel they have a good understanding of how they can decrease their outstanding balances.

The research also found older generations are more likely to rely on credit cards, with 70 per cent of 55 to 64-year-olds having at least one, as well as 62 per cent of over 65s.

But, of those that use credit cards monthly, older adults are more likely to use them to pay for food and transport, while those under the age of 34 cover the cost of subscriptions, childcare and mortgage or rental payments.

The study found 40 per cent of adults have specific financial goals set for their future. However, 72 per cent of these feel the rising cost-of-living crisis has set them back on achieving them, believing it will be more than a year before they get back on track.

Despite this, 59 per cent haven’t sought help from a financial advisor as they don’t feel there’s a need (38 per cent), can’t afford it (29 per cent) or don’t know who to trust (18 per cent).

It also emerged 28 per cent of over 65s who aren’t yet retired aren’t confident that what they have put away will be enough to support their lifestyle in retirement.

And 70 per cent of this age group are concerned about the amount of money they’ve accrued as part of their pension pot.

Says Mark Gregory, CEO & founder of Equity Release Supermarket:

“The nation is facing a cost-of-living crisis, which is having a compounded impact on people’s finances and seeing more and more hit by debt and struggling to fill the void.

“Our research has shown that many are in need of support, and perhaps most shockingly have never reached out for help to gain the financial advice they fundamentally require.”