FCA warns Brits to seek help as soon as possible over financial troubles
The financial regulator has urged Brits to seek help as soon as possible if they are facing financial difficulties amid the spiralling cost of household bills.
Research has suggested that many borrowers are missing out on available support, the Financial Conduct Authority (FCA) said on Wednesday.
Half of those borrowers in financial difficulty who waited more than a month before seeking help regretted not reaching out sooner, the FCA and Money Helper said.
For those who waited more than six months, the feeling of regret increased to two in three people.
Consumers were urged to not let feelings of embarrassment stop them from seeking out help, as the cost of living crisis deepens.
Brits were encouraged to contact their lender if they were struggling to make payments.
Consumer confidence in the economy has plunged to its lowest point since the start of the pandemic as this week Sainsbury’s top boss warned the worst was yet to come.
According to Which? research published today, only eight per cent of consumers felt the UK economy would improve over the next 12 months.
However, nearly eight in 10 (78 per cent) thought it would worsen, resulting in a net confidence of -70 compared to -47 in May.
Confidence in future household finances also dropped to the same level as in March 2020.
Pressure on budgets is increasing amid hiked energy, fuel and grocery bills, with inflation surpassing nine per cent last month.
Six in 10 said their household had been forced to either cut back on essentials or dip into savings, to cover spiralling costs in the past month.
Yesterday, Sainsbury’s Simon Roberts warned rising pressure on household budgets would “only intensify over the remainder of the year”.
In a trading update, the grocer revealed like-for-like sales, excluding fuel, declined by four per cent over the 16 weeks to 25 June, compared with the same period last year.