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Debt, investment, car insurance and savings

02/09/2016 12:10:26

 

Debt

The stats showing the percentage of people especially young people in debts indicates that over one-third of them owe almost £3,000, and have great concerns about money.

A survey carried out by YouGov for the Monet Advice Trust on over two thousand people between the ages of 18 and 24 showed that they young people borrowed with the use of credit cards, loans from friends and relatives and overdraft.

Over fifty percent of them had worries about money, with about one-third of them feeling that the debts were a ‘heavy burden.'

It was also discovered that women worry more about money than the masculine folks do. The average debt calculated at about £2,989 does not include mortgages and student loans with the average loan balance standing at £25,505.


Investment

The UK saw an influx of foreign investments in the year to April 2016, which is according to figures from the government.

The Department for International Trade reported over two thousand inward investment projects, an increment of about 11 percent compared to the previous year. The data also portrays the United Kingdom as the most popular destination in the EU for overseas firms.

The major concern, however, is the effect of Brexit on the investment prospect in the UK.


Motor
insurance

Studies have shown that young drivers now spend £98 more on running their vehicles majorly because of the increase in fuel prices resulting from the rebound in global oil prices.

comparethemarket.com revealed after a study conducted on car owner between 17 and 24 years that the costs of running a car have risen to £2,299 annually.

Motor Insurance has been identified to be one of the major car expenses, taking over 54 percent of the total cost. There has been a steady rise in car insurance premiums for drivers between the ages of 17 and 24 since March with the average insurance cost rising by about £143 compared to the figures in July 2015.


Prosperity

The UK has been identified to be more prosperous compared to the previous year, with Scotland enjoying the biggest boost in prosperity.

According to The Guardian, the uncertainty in the economic conditions as a result of the volatility in the stock market and slowdown in the Chinese economy coupled with Brexit issues had no major negative effect on the regions in the UK as no region experienced a decline in prosperity last year.

It is also worth noting that the paper reported an optimistic and positive feeling on the part of the consumers as regards their personal financial situation, though, they worried about the prospect of the UK as a whole.

The monthly barometer for tracking consumer spending habits and confidence revealed that almost seventy percent of consumers expressed confidence in their personal finance, the week following the Brexit vote.


Savings

New research conducted by Aegon revealed tat over 90 percent of people between the ages of 45 and 54 said that they have issues with savings for retirement.

The concern here stems from the fact that people in their late forties and early fifties have been discovered to be at the peak earning years.

The commonest reason identified for the poor saving culture is the cost of living or insufficient income.


Children

The annual Parents’ Summer Spending Report compiled by Post Office Money has shown that parents are expected to spend over five hundred pounds for the entertainment of their children over the summer.

The figure mentioned above is a thirty percent increment over the last half decade, and the effect tends to be heavy as the new school year approaches.

Some of the parents have resorted to dipping into their savings to cater for these expenses, while others will rather spend all they have in their savings. Another quarter of the parents has decided to resort to their credit cards with twenty percent of parents planning to work overtime to get enough funds to spend over the summer.