As economic circumstances worsen, don't get bogged down

It's clear that in these troubled times, people are getting more and more concerned about their own finances.  Understandably so.  We may be out of a recession at the moment but there's the possibility that one false move will put us back into a double-dip recession without a moment's warning.  

New survey results have been released: 

• Over two-fifths of people (43%) believe that their financial situation will worsen over the next few months.
• Less than a quarter of people (24%) think that their financial situation will get better.
• Nearly half (45%) are concerned about the amount of debt they owe.
• More than half (56%) are concerned, in particular, about credit card debt.
• Younger people are worrying more about debt – 57% of 25-34 year olds are currently apprehensive.

What has caused this? Well, in the last few months you can look towards factors like: 

• The VAT rise – this has had/will have a significant effect on the buying habits of consumers.
• The continuing rise of fuel and utility costs – this is adding an unnecessary and problematic burden when it comes to bills management.
• Pay freezes and pay cuts – some workers are not getting an increase in their wages so they are struggling to find the money to cope with new pressures.
• Redundancies – this is particularly unhelpful in a job market that is becoming ever more competitive, as proven by recent unemployment statistics.

What about home-owners, or people who have just recently bought a new house? Well, the property market isn't helping matters. The average property value has been plummeting for eight months and new data from the Financial Services Authority showed that new loans to borrowers reached £37 billion in the last quarter of 2010. They also said that the number of new arrears cases increased to 38,800 in the last quarter of 2010.

Given all this information, it's very easy to be snowed in underneath the doom and gloom. It's easy to just give up and concede defeat and just ignore your problems by pushing it under the carpet. The problem with that method is that it'll only get worse.

Believe it or not, there is a light at the end of the tunnel.

What should you do first?  

Breathe!  It sounds utterly obvious and dumb, but if you're flustered or stressed then you won't be in the right frame of mind to deal with these problems. In a world that is fast-moving, thanks to the Information Age, it's easy to just go with the flow without taking time out to reflect and think. Going against the tide has never seemed such a better idea.

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One Stop Financial Security will help you in the process of breathing and thinking.  We are there every day of the week and we will offer a service that is caring, professional and with only aim: to get you on the road to financial recovery.  This will be the case no matter how bad things get.

Call now on 0800 860 0312 / 07768 197507 or e-mail help@osfs.co.uk to find out more.