Regional Spending Divide Identified

Those in the south of the UK could be at greater risk of getting themselves into debt than their northern counterparts, research reveals.

A new survey from Legal & General shows that nearly a third of those living in London (31 per cent) are in the mood to spend their earnings – almost half as many again as their northern counterparts (21 per cent). In comparison, seven out of ten (70 per cent) of northerners expressed a desire to save in the current climate, compared to a lower 57 per cent of those in the capital.

The company suggests that the disparity between the north and south seems to be growing, potentially suggesting that more people in the south could be at risk of over-stretching their budgets and finding themselves in need of debt consolidation. However, for those confident that they can make repayments on their spending, the ready money needed for large purchases might be best afforded using a low cost loan.

Legal & General’s wealth management head of marketing, Julia Clayworth, comments: “Whilst the overall spending and savings patterns haven’t changed dramatically this month, what we have noticed is a growing regional difference in spending and savings habits.”

The increased mood for saving in the north could in part be due to an observation that the company describes as “worrying” – that nearly 20 per cent of consumers in the north are spending more on paying bills and debts than they are currently earning. The figure is significantly higher than that noted for the south west (six per cent) although not greatly higher than the proportion of Londoners, 15 per cent of whom are in similar circumstances.

With such debts and financial strains undoubtedly growing, a debt consolidation loan could provide the answer many consumers need, by lumping together a number of debts on credit cards and loans into a single monthly payment.

Ms Clayworth continues: “In times of financial uncertainty it is more important than ever for people to keep a close eye on their spending and budgets. Although it is worrying to see nearly 20 per cent of people in the north region can’t pay their monthly bills at the moment, it is reassuring that people are acting in a responsible manner by spending less on going out and entertainment.”

She concluded by asserting that those who do find themselves in financial strife should always seek out independent financial advice to make sure they address their debts in the most suitable manner.

Meanwhile, Frances Walker has suggested that consumers should act now to get their financial situation in good order. The spokesperson for the Consumer Credit Counselling Service has stated that demands on consumer pockets are likely to grow as 2008 progresses and that sorting out debts now could ease the strain should the likes of increased energy bills impinge upon future household finances. Alongside higher utility bills, mortgage repayments may also rise as the year progresses for those reaching the end of fixed-rate deals.

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