An increasing number of people are concerned about their finances, new research shows.

In the 24th annual UK Financial Activity Bulletin from John Gilbert Financial Research, a decreasing number of Britons are financially active, whether this is through borrowing, saving or investing money. During the last two years, the proportion of Britons who expect that they will carry out some kind of fiscal move, such as getting a loan or taking out a savings account, has dropped from 84 per cent to 67 per cent, the equivalent of eight million people. According to the company, this “sharp decline” in activity is surrounded by a climate of weak growth in disposable income levels and the effects of the recent credit crunch on the availability of cheap personal loans and other competitive monetary products.

Overall, the number of adults who state they will be inactive in terms of managing their finances stands at 16.4 million, an increase from the 14.2 million recorded in 2007. An estimated 1.3 million fewer people intend to borrow money, whether this is through loans, credit cards or otherwise, this year in comparison to last. Meanwhile, a decrease of some 2.4 million has been noted in those wanting to save or invest.

With about two-thirds of adults now expecting to save, borrow or invest this year, the level of financially-active Britons is currently at its lowest since the survey began in March 2002. It was also pointed out that consumer confidence is now the lowest point seen since December 1995, with the country’s spending outlook at its weakest since June 1991.

The study also indicated that those living in the south of the country will be the most financially active. About three-quarters (76 per cent) of people from East Anglia and 71 per cent of London residents expect that they will either borrow, invest or save money this year. Meanwhile, consumers living in the capital are the most likely to borrow, whether through a loan, plastic card or other means. These consumers account for 20 per cent of those with plans to address their finances in the next 12 months. In addition, Londoners are also looking to pay back their debts the most, as 29 per cent have such intentions compared to a British average of 21 per cent.

Commenting on the findings, John Gilbert, author of the report, said: “The latest survey findings confirm the very difficult operating outlook for retail financial services businesses predicted in last quarter’s survey. Borrowing intentions have been weak for some time but the concern for many providers in this survey is the fall in savings intentions which will add to retail funding pressures.”

Despite intentions of financial inactivity, those consumers who are worried about their ability to manage their money over the coming 12 months may wish to consider applying for a personal loan. In taking out a secured loan, homeowners may not only be able to supplement their spending but also pay for home improvements and – if used as a means of debt consolidation – pay off bills and creditors quickly. The latter may be helpful to those struggling with their money in the wake of the Christmas period. Susan Hannums, savings manager for AWD Chase de Vere, recently claimed that people worried about their finances after the festive season should “try and clear those debts as quickly as possible”.

1 Stop Finance Shop providing you with breaking personal loans news.