In a study carried out by the Alliance Trust Research Centre, it was revealed that the official rate of inflation fell to 4.5 per cent over the course of October. And while the firm stated that the actual increase in living costs that people face also declined during the month, many Britons are still said to be experiencing a surge in expenses that is some way above the headline figure. Indeed, it was indicated that the older a consumer is, the likelier it is that they will have to contend with higher living expenses. Although those above the age of 75 were shown to have seen the amount of inflation they are victim to fall 0.8 percentage points over the course of last month to stand at 7.1 per cent, Alliance Trust claimed that this is still some 58 per cent higher than the headline figure. Meanwhile, 65 to 74-year-olds and 50 to 64-year-olds are currently shown to be seeing living costs rise by 5.8 and five per cent respectively.

On the other hand, 30 to 49-year-olds and those under the age of 30 were shown to be privy to rates of inflation underneath the official figure. People in such age demographics are indicated to be experiencing inflation rates of 4.4 and 4.2 per cent respectively.

As an example of the rising money management difficulties that consumers may be facing, the firm revealed that gas prices have surged by over 50 per cent over the last 12 months, with the cost of electricity up by about 30 per cent. It was also stated that while food price inflation fell last month, costs are still 11 per cent above those recorded this time last year.

Such rises were said to have a particularly dramatic impact on older people, who tend to spend a greater proportion of their household budgets on these areas. Younger Britons, meanwhile, in addition to generally spending less money on utilities and food, were shown to put a large amount of expenditure on things such as clothing, audio-visual goods and footwear that are continuing to fall in price.

In facing an increase in day-to-day costs, it could be possible that consumers find they are developing problems in keeping up with other financial commitments in areas such as personal loans, credit and store cards and mortgage repayments.

Commenting on the report, Shona Dobbie, head of the Alliance Trust Research Centre, said: “While it is good to see headline inflation fall back sharply this month, we remain concerned about the high level of inflation which the older age groups still face. The rate of inflation facing the over-75s has been reduced, but only to 7.1 per cent, which is still 58 per cent higher than the official rate of inflation. This highlights the extent to which the elderly are suffering disproportionately from rising utility costs which have soared over the past year. The recent gas and electricity price hikes hit the elderly the hardest because they spend a higher proportion of their household budget on such services.”

She went on to report that high inflation rates in gas and electricity is of particular concern for older people as winter begins to set in, stating that higher utility and food prices “leave elderly households with less money to spend elsewhere”.

For those consumers who are concerned about their ability to manage their money over the coming months, applying for a debt consolidation loan could prove to be useful. By taking out this kind of loan, borrowers may be able to merge various spending commitments into a single low-cost monthly repayment. This may prove to be of particular assistance after the Motley Fool reported last month that 37 per cent of Britons claim to be willing to shell out as much as an additional 60 pounds each month on their gas and electricity in order to keep warm over the cold, winter months.

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Such is the assertion of comparethemarket, which reports that although the current economic decline is seeing many people looking to reduce their savings wherever possible, attempting to claw back expenditure on certain areas, in particular related to their car, may not only leave people with a bigger financial headache but could also be dangerous and against the law. One area this was revealed to be done was through fronting.

This, the price comparison website, indicates, is when a person listed as the main motorist on an insurance premium for a car is in fact only a secondary driver. As an example, it was claimed that by listing a parent as the major motorist on a policy can result in lower costs if in fact the cover has been taken out on a car of which someone under the age of 25 is the main driver.

And pointing towards a recent study the firm commissioned YouGov to carry out, it was shown that about a quarter of Britons claim that they have fronted as a means of lowering the amount of money they pay on their car insurance.

However, it was reported that it is important for those policyholders who claim to be the main driver when in actuality they are not “to understand the dangers of what they are doing”. Although comparethemarket reported that fronting in itself is not a criminal offence, it can result in a policy being voided. As such, if they need to make a claim such motorists were reminded that their insurance provider would not make a payout and in turn may lead them to face thousands of pounds in potential costs. In addition, a driver will be classed as being insured, something which is illegal.

Following on from increased insurance costs, those consumers found guilty of fronting could find that they struggle to manage other expenses related to motoring. This may mean that making payments for repairs, servicing and MOT becomes a more arduous task. Furthermore, such problems with money management could extend to personal loans, mortgages, utility bills and credit cards.

The study also revealed that although 31 per cent of Britons state to be aware that they run the risk of their claim being rejected if caught fronting, about one in six 18 to 24-year-olds claim to be undeterred from making such a fraudulent move.

Commenting on the figures, Jeremy Moll, insurance expert at comparethemarket, said: “Culprits of fronting mainly include young drivers or those who have just passed their driving test as they can save themselves a bit of money. However, this has the risk of your claims being refused and you being prosecuted for driving without insurance which could lead to a fine and penalty points and in some cases being disqualified from driving. It also prevents you from building up your own no claims bonus and prevents you from lowering your own insurance premium, which can cost you more in the long run.”

Those on the search for a new set of wheels – whether it is a Lamborghini, Lexus or Lada – might want to consider applying for a car loan. In taking out such a loan, motoring enthusiasts may find that they can get their dream vehicle quickly, leaving them with an affordable rate of monthly repayments. The financial assistance on hand with such a loan could also see them be able to pay for other motoring-related expenses – such as comprehensive insurance, MOT and repairs – with relative ease and without having to resort to illegal or unscrupulous tactics. Meanwhile, research carried out by Tesco Personal Finance indicated that the end of last month may have seen some 400,000 drivers hit with more expensive repair bills following the expiration of their car warranty policy. It was also revealed that an estimated 45 million pounds is set to be spent on everyday vehicle repair costs during the coming 12 months.

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Such is the assertion of Tesco Personal Finance where in a recently released piece of research it was revealed that thousands of drivers are leaving themselves open to the risk of expensive repair bills related to their vehicle. This, it was stated, is due to consumers discovering that their car warranty is set to expire by the end of this month, with an estimated 400,000 drivers set to be affected. It was reported that this could have a particularly negative impact on motorists ability to manage their money due to recent increases in the cost of car tax and petrol prices, in addition to the wider impacts of the ongoing credit crunch. Overall, it was revealed that some 45 million pounds could be spent on everyday vehicle repair costs over the course of the next 12 months.

For consumers finding that their vehicle is in need of repair but who are no longer in possession of warranty cover, they may be required to dip into their own pockets and purses in order to pay for replacement parts and labour. In turn, this could have an impact on their ability to keep up with other areas of financial demand. This may mean that handling monetary commitments, such as home loans, credit and store cards, utility bills and mortgage repayments, becomes more difficult to manage.

The common faults which UK vehicles suffer from were revealed to include problems with the alternator and the failure of the central door locking system.

Commenting on the figures, Allan Burns, head of insurance for Tesco Personal Finance, said: “September is always a busy month for motorists as many drivers buy a new car. However, this also means that the warranty on some cars expires which can leave drivers potentially facing huge repair costs. We find that drivers don’t tend to budget for these alongside their other motoring costs so they can certainly come as a surprise.”

As a case study, the financial services firm pointed towards the case of Tim Downs, a motorist from Leeds, West Yorkshire. It was revealed that upon buying a Honda, Mr Downs chose not to renew his warranty period due to the car manufacturers “reputation for reliability” and his confidence that his vehicle would not encounter any problems. However, this turned out not to be the case as he recently found that there was a fault with his engine, which saw him dip into his own pocket in order to meet such expenses. Consequently, the driver was left a repairs bill of just under 1,000 pounds, something he claims may “easily have been saved” if he had decided to have taken out warranty.

And although the firm states that the most effective way to avoid encountering such monetary difficulties with meeting the cost of repairs in the future is to take out comprehensive warranty cover, motorists who need immediate financial assistance might wish to apply for a quick loan. By obtaining a car loan, borrowers could find that they are able to effectively afford the expense of having their car fixed and back on the road. The cash provided by a cheap loan could also help people to purchase warranty and a wide-ranging car insurance policy.

Indeed, a loan might be of help to those looking to make modifications to their motor vehicle, such as adding a new sound system or body kit. However, speaking in conjunction with Tim Westwood, Radio 1 DJ and presenter of Pimp My Ride UK, Tesco Personal Finance reminded motorists that those looking to improve their car are likely to find the amount of money they have to pay towards their motor insurance increases.

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Such is the assertion of uSwitch where recently released figures point to a picture of financial doom and gloom. According to research by the price comparison site, the average amount of disposable income which Britons now enjoy stands at 14,520 pounds. Such a figure marks a decrease of 15 per cent from studies carried out this time last year. Furthermore, the amount of money which consumers have after meeting various spending commitments is now at its lowest level since 1997.

The drop in the amount of disposable money available was attributed to dramatic increases in essential spending costs. One such area to have seen an increase is the price of gas, which has gone up 28.3 per cent during the last 12 months. Meanwhile, the official inflation rate of food was revealed to stand at 13.7 per cent. And although the fact this is a 28-year high may be enough in itself, certain areas of produce were shown to have particularly hiked in price. Among these were dairy goods and meat which have surged by 19 and 16.3 per cent respectively. TV licenses, electricity and education costs were also shown to have gone up, with building insurance increasing by 4.5 per cent since 2007.

With such falls in disposable income and surges in living costs over recent months, it is likely that people could find that as more of their money is spent on the essentials, their ability to keep up with borrowing commitments – such as personal loans and credit cards – comes under increased strain.

The study also showed that difficulties with disposable income could be felt most keenly by those in the north-east of the country, with people from Newcastle said to have the highest proportion of their income taken up by essential household areas. Those in the city were revealed to be putting more than three-quarters of their income (76.8 per cent) towards crucial spending commitments with a remaining disposable income of 4,836 pounds. Hull came second on the list of places in Britain with the least amount of disposable cash, as its residents spend 65.5 per cent of their annual salary on the essentials, with Sunderland also in the top ten chart. On the other hand, Watford and Cambridge were shown to be among the places with the highest levels of disposable income in the UK.

Figures from the price comparison site also showed that income tax and National Insurance rates have risen by six and 4.6 per cent respectively since 2007, while this year has also seen a fall in average house prices; the first time that this has taken place since 1992.

Ann Robinson, director of consumer policy for uSwitch, said: “Consumers are in a lose/lose situation where everything is shooting up except their income. The shock increase in the consumer price index – which has more than doubled in the last six months to over twice its official target – will impact everyone this year. It’s a catch 22 situation – struggling consumers need pay rises to help them meet the mounting cost of living, but the Bank of England and the government wants to keep pay rises to a minimum to dampen inflation. People now have less money in their pockets than at any point since 1997 and British consumers are facing an autumn of discontent.”

Consumers worried about their ability to manage their money over the coming year might wish to consider taking out a debt consolidation loan. By applying for this kind of loan borrowers may be able to merge various spending commitments into a single low-cost monthly repayment. This could prove to be of particular financial assistance for those struggling with spending after a recent study by Gocompare showed that 60 per cent of Britons view reducing their outgoings and cutting back on loan and credit card debts as their main financial priority for the next 12 months. It was also revealed that 49 per cent of people are either very concerned or concerned about their current monetary situation.

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Such is the assertion of the Motley Fool, where in a recent piece of research, it unveiled some of the country’s most frequent financial blunders. The personal finance publication reported that making a wrong investment was the largest source of cash difficulties experienced by Britons. The study showed that some 13 per cent – the equivalent of one in eight people – stated investing in the wrong area had resulted in their fiscal problems. Meanwhile, having a romantic relationship with the wrong person was shown to result in more than just heartbreak for a significant number of Britons. It was revealed four per cent of respondents cite a past partnership as being a “costly goof”.

Upon making poor financial choices, it may be possible that consumers struggle to keep up with various monetary commitments in areas such as loans, mortgage repayments, store cards, transport costs and utility bills.

Research from the firm also indicated that seven per cent of respondents believed that borrowing more cash than they have been able to pay back has resulted in the biggest burden on their spending, with seven per cent cited the impact of credit card debt on their finances. These areas were revealed to be the second and third overall highest areas of monetary “pain” respectively.

For these consumers in particular, such errors in judgment could cause them to struggle with high levels of debts – in areas including personal loans and credit cards.

The study also showed that two per cent of Britons believed that working for themselves had been their largest monetary mishap, while the same proportion also noted that selecting the wrong mortgage product has had a negative effect on their financial standing.

However, the financial picture for Britons is not one entirely of doom and gloom. According to the Motley Fool, four per cent of people claimed that selecting the right mortgage product has had a positive impact on their overall wealth situation. Meanwhile, one out of 25 respondents reported working for themselves has had monetary benefits. Making provisions for retirement and saving cash for a rainy day were also areas reported to have had a helpful effect with a consumer’s finances.

Commenting on the figures, David Kuo, head of personal finance for the Motley Fool, said: “Most of us will make money mistakes as we take greater control of our finances. The only people who never make mistakes are those who never make decisions. In an increasingly complex financial world it is good to know that help is only ever a mouse-click away. And if you don’t ask, you will never learn. The important thing to remember is that making the right choices comes from knowledge and knowledge comes from knowing why you and others made wrong decisions.”

For people looking to get on a firm financial footing after making a series of monetary mistakes, applying for a bad credit loan could be recommended. In getting such a loan, borrowers might find they are able to supplement their spending, pay off debts and make major purchases quickly and effectively. A poor credit loan might be especially advisable for those who have had difficulties in meeting demands for repayment in the past but are confident about their capacity in being able to manage their money.

In other news, research carried out by Egg earlier this year revealed that about half of all Britons claimed that they would only be able to manage on their savings for 16 weeks if were suddenly out of a job. Such a period of time was stated to be of significance as the financial services firm warned this is the average length it takes for someone to get a new job. And with about one in four said to have little or no cash set aside in case of an emergency, it was reported that not planning for the future could result in a “financial time bomb“.

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In research carried out last week by Scottish Widows it was indicated that just over half (51 per cent) of people are currently saving “adequately” with at least 12 per cent of their salary being placed into pension pots. This figure represents a rise from the 49 per cent recorded in 2007. Meanwhile the financial services firm’s average savings ratio increased over this period of time to stand at 8.7 per cent, the highest number recorded since the annual study began three years ago.

It was revealed at present that about a fifth (17 per cent of consumers) are putting between six and 12 per cent of their annual income away into retirement savings, with 14 per cent saving somewhere between zero and six per cent. On the other hand 18 per cent are not saving any money away, down from the 28 per cent noted two years ago.

Following on from making comprehensive levels of saving for retirement, it is possible that consumers are able to manage various demands on their spending in later life. This may mean that they are able to meet the cost of property repairs, higher than expected bills or loan repayments with ease.

Ian Naismith, head of pensions market development at Scottish Widows, stated: “While pensions savings are slowly starting to rise, there is still the real worry that in the current economic environment the nation is not doing enough to prepare for retirement. While the savings message that we have been campaigning on for several years is getting through, with people scared that they will not have enough to live on in retirement, this hasn’t necessarily translated into pensions savings. Traditionally in times of economic uncertainty, long-term savings have increased but people need to ensure that they are saving into the right vehicle; the best investments for those seeking security in retirement are pensions.”

However, Mr Naismith went on to report that in spite of the improvements which have been made in Britons’ desire to save for retirement “there is a distinct sense of pessimism emerging from our results with consumer confidence falling compared to last year”. The pensions expert asserted that a significant number of Britons believe that the current financial climate means they cannot afford to put any extra cash away for savings. And with the cost of living continuing to rise it was reported that “the outlook isn’t getting any brighter”.

The firm showed that a third of people currently saving think they are in a position where they are unable to increase the amount of money that is being put away for retirement. Meanwhile, some 59 per cent do not envisage increasing their savings levels over the course of the next 12 months. Scottish Widows also revealed 32 and 29 per cent of Britons state to be pessimistic about their short and long-term financial situations respectively. The fear that significant numbers of consumers hold in regards to their savings were also revealed in statistics revealed 37 per cent of Britons are concerned about not having any cash to put away into a pension scheme, up from the 34 per cent noted last year.

For those consumers who are concerned about their ability to put money away for the future taking out a debt consolidation loan might prove to be of assistance. By selecting such a loan, it is possible that borrowers are able to merge various constraints on their spending into a single low-rate monthly repayment. This may prove to be of particular assistance after a study carried out by Skipton Building Society last month showed that those over the age of 55 are struggling the most to manage with surging living costs. It was also reported that older people are more likely to have taken steps to cut back on their spending following on from rising expenses.

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In the Property Makeover Price Guide released by Building Cost Information Service (BCIS) – which is a trading name of the Royal Institution of Chartered Surveyors – it was revealed that the typical cost of a home improvement project has gone up by a fifth during the last two years. Furthermore, BCIS showed that the cost of resecuring six roof tiles or slates has gone up by 17 per cent over the last two years. Meanwhile, a 3×5 m basement conversion was indicated as costing an average of 8,000 pounds in 2006. Now, such work stands at 10,000 pounds. It was also indicated that roofing work has increased by over a quarter during the past two years, with plumbing and electricity expenses posting growth of 22 per cent. Meanwhile, the cost of painting has gone up by 17 per cent.

Additionally the study showed that the cost of having the same work done will vary depending on its location within Britain. Those living in the north-west who want a 3×3 m single-storey extension carried out will find that it costs them an average of 19,320 pounds. However, for consumers resident in the Greater London area such a project would set them back 23,940 pounds.

For those consumers considering carrying out modifications to their home, whether it is tiling the bathroom, repainting a living room or adding a conservatory, obtaining a home improvement loan could be an advisable way in which to fund such projects.

The rise in home improvement costs was partially attributed to surging oil prices, which drives up the cost of transport. BCIS pointed to analyst predictions that the cost of a barrel of oil will reach the 100 pounds barrier in the years to come. Meanwhile, raw materials as a whole were indicated as becoming more expensive due to surging demand from emerging economies such as India and China. In addition, the incoming of “quality” tradespeople from the European Union was reported to have resulted in increased competition for labour causing costs to rise even further.

Joe Martin, executive director for BCIS, said: “The current downturn in the housing market is forcing some homeowners to become more creative in meeting their accommodation needs. Many are choosing to stay put and renovate or extend in order to upgrade their property rather than taking on more debt in a falling market. This can be a wise strategy as home improvements add value to a property and people will be well placed to take advantage of this uplift in value when the market shrugs off the current slump. Given that the cost of home improvements rose by 20 per cent over the past two years compared with only eight per cent in average wage growth, many homeowners are opting to act now rather than paying more further down the track.”

He went on to report that although financing any home improvement or repair work may be “costly”, for homeowners attempting to ascertain what a fair price they should be paying for such projects may also be challenging.

For those consumers looking for an effective means of financing property renovations obtaining a home improvement loan could be recommended. In taking out this kind of home loan, it is possible that borrowers can pay for materials required quickly, in addition to hiring qualified professionals to carry out the work. Such a homeowner loan may be of particular help after Cheshire Building Society recently advised consumers to make sure that they take steps to ensure the security of their property and belongings before going away on holiday.

By getting this type of loan it is possible that homeowners can afford the cost of installing safety lights, locks and gates.

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Research carried out by esure Home Insurance has revealed that many people are looking to take advantage of the pleasant weather and carry out improvements to their green space. The financial services provider indicated that some 11 per cent of homeowners are set to spend at least 500 pounds on their gardens over the course of this year. And a significant number of consumers are already placing a high amount of value on their garden, with 14 per cent of homeowners stating their shed contains goods worth more than 1,500 pounds.

For those looking for an effective way in which to finance renovating their gardens, taking out a home improvement loan may be recommended.

However it appears that many Britons could be exposing themselves unnecessarily to theft with 93 per cent of respondents reporting that they often leave items – such as tools, children’s toys and jet washers – in their garden overnight. Furthermore, just over two-thirds of respondents have not thought about improving the safety of their gardens. Meanwhile, one in ten people have considered taking such action but are yet to do anything about it. And although 69 per cent of Brits are said to own a shed, just under one in ten of such consumers state that they never bother locking it. Overall, some 650,000 homes across Britain have been a victim of garden theft during the last 12 months.

Should consumers lack a sufficient insurance policy – or not have cover altogether – they may find that they are required to dip into their own pockets to repair criminal damage to their garden. In turn this may have an impact on their capacity to manage other spending commitments, such as personal loan repayments, credit and store cards, utility bills and council tax costs.

Findings from the firm also showed that those living in Wales are most susceptible to garden thefts. Some five per cent of people from this part of the country have had an item stolen from their garden during the past 12 months. Meanwhile, homeowners in the south-east of England might find themselves under particular financial pressure should their sheds be struck by criminals, as consumers there keep items worth a total of 577 pounds kept in such outbuildings.

Commenting on the figures, Mike Pickard, head of risk and underwriting for esure Home Insurance, said: “The trend towards converting useful storage space into valuable living space and the nation’s obsession with hoarding clutter is putting pressure on garden storage and may cause a surge in garden theft as belongings are left unsecured and vulnerable. Even household items are now being stored outdoors, blurring the distinction between home contents and outbuilding and garden contents. Homeowners should check the limits of their insurance policies because some are relatively low and in the event of an outdoor theft not everything may be covered if your shed is bulging with valuables.”

Budding Alan Titchmarshes looking to revamp their garden this summer might wish to take out a homeowner loan to fund such work. In doing so, borrowers may find that they are able to buy new plants, flowers and garden furniture quickly and effectively. The financial assistance a loan brings could also help consumers to purchase a comprehensive insurance policy in addition to assisting with the installation of locks, sensor lights and other security features. A loan might also be of assistance to consumers wishing to purchase a car, in addition to comprehensive cover for the vehicle. In April, a study by AA Personal Loans revealed that about three-quarters of drivers state their vehicle has been deliberately damaged by vandals, with the north of England shown to be the biggest target of car crime.

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A study carried out by Axa indicated that just over two-thirds (68 per cent) of working consumers think that reforms to the retirement sector are set to take place over the next ten years. Meanwhile, more than half of those people who have already retired believe that such changes are to occur. Following on from such moves, 71 per cent of consumers think that a reworking of the retirement sector will mean that public pension benefits are set to diminish, in comparison to an international average of just 57 per cent of consumers.

Research from the financial services provider also showed that 19 per cent of retired consumers think that the social security sector is to face decline, with this proportion rising to 29 per cent among working Britons. It was also revealed that some 91 per cent of people think that they will now have to work for a longer period of time in order to save sufficiently for retirement.

Following on from a lack of sufficient savings, it may be possible that consumers struggle with managing their finances as they get older. This may lead to them developing problems in meeting the cost of property repairs, making repayments on personal loans or paying back higher than expected utility bills.

In spite of such concerns however, 64 per cent of current retirees believe that they have money to manage sufficiently after giving up work. Such a figure represents an increase from the 57 per cent recorded during the same study by the financial provider carried out in 2007.

However, 83 per cent of those Britons who are retired state they are enjoying a greater post-work lifestyle than their parents did during the same stage in their retirement. Meanwhile, just 40 per cent of respondents think that their children will have a better future in retirement than they will.

Commenting on the figures, Steve Folkard, head of pensions and savings policy for Axa, said: “Some people have negative thoughts of retirement and it is not surprising that feelings of trepidation are heightened in the current financial climate. The research shows that a significant number of people are sure that retirement reform will lead to reduced public pension benefit and with this in mind, we would advise people to take steps as early as possible to secure their own retirement income. Although the majority of retirees say that their retirement income is sufficient, people still in work should be aware that having a happy and prosperous retirement costs money, so it’s vital they plan ahead.”

For those people with concerns about their ability to save sufficient levels of money for their life in retirement, taking out a cheap loan might be of assistance. Although this represents another source of financial demand, by using such a loan as a means of debt consolidation consumers could discover that they are able to meet numerous constraints on their spending at once. By merging the likes of credit card bills and outstanding mortgage and personal loan repayments into a single low-cost outgoing, borrowers might find that they are left with more disposable income each month. This may allow them to invest more cash into a retirement plan. Furthermore, a debt consolidation loan might be of help to those struggling to put money into savings schemes as a whole.

Last month, research carried out by Alliance & Leicester indicated that just over half (52 per cent) of Britons have money that they claim they intend to put into savings lying around in a normal current account. It was also revealed that six per cent of consumers have money set aside for later life in cash rather than invested into any type of monetary vehicle.

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A study carried out by Equifax reveals that about half of people are setting aside cash on a monthly basis for use in later life. Some 49 per cent of consumers questioned by the credit reference agency at the beginning of this year claim they are regularly putting money aside. Such a figure represents an increase from the 37 per cent recorded in the same study in December 2007.

The increase in financial preparations was attributed to a rising awareness among members of the public that economic conditions are set to worsen over the coming months. It was stated the credit crunch is going to increasingly make its presence felt, while the impact of the five interest rate rises leading up to August 2007 could also have an effect.

Just under three-quarters (71 per cent) of people setting cash aside were shown to be investing into a bank or building society savings vehicle. An estimated 45 per cent, meanwhile, are putting money into an individual savings account.

Following on from saving money more often and on a regular basis, it is possible that consumers can find they are able to cope with demands on their spending in later life with greater effectiveness. This could see them be able to meet the cost of property repairs, personal loans and credit cards with more ease.

Research from Equifax also indicated that ten per cent of homeowners have a mortgage which is worth more than five times their annual income. Meanwhile, the proportion of consumers owing more than 5,000 pounds through loans and credit cards has fallen from 42 per cent to 32 per cent. The study also showed that about one in four of those surveyed are at present not in any form of short term debt. However, only four per cent of people in 2007 could claim this.

Commenting on the findings, Neil Munroe, external affairs director for Equifax, said: “It is encouraging to see that people appear to be saving more and being more cautious when it comes to spending. But many people are still living with huge amounts of debt, meaning they could quickly fall behind on payments and jeopardise their credit rating. We advise consumers to apply for a copy of their credit file to gain a clear picture of their financial situation.”

He added that the firm’s study showed there is a “pragmatic attitude to savings” by many consumers. Mr Munroe also reported that there is more awareness among Britons to cut back on unnecessary day-to-day spending and instead save more money for the future.

Research from the firm also indicated that 42 per cent of Britons questioned this year state their disposable income goes towards buying new clothes, a fall from the 51 per cent recorded in 2007. Meanwhile, those spending money on dining out and takeaway meals has dropped by three percentage points to 52 per cent. In addition, the Equifax director pointed out that expenditure towards holidays “hasn’t changed much”.

Whether looking to make a major purchase or simply consolidate debts, taking out a personal loan could be of assistance to many consumers. By getting such a loan, borrowers could find that they are left with affordable low-cost repayments to make at the end of each month. However, ahead of doing so it may be advisable for consumers to take out a copy of their credit report.

In doing this, Equifax claimed, prospective loan applicants will be able to get an idea of what their credit score is and how likely it is that they will be able to make a successful request for a cheap loan.

Furthermore, a cheap personal loan could prove to be of assistance to those still struggling with their spending in the wake of the festive period. Speaking last month this year, Chris Tapp, director of Credit Action, stated that Britons should be taking steps to curb pressures on their spending and cut back on their day-to-day expenditure. He pointed towards predictions that inflation rates are to rise as the general financial market continues to diminish.

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