Even though people are spending less on the High Street, they are still struggling with rising interest rates, inflation, house prices, and utility bills. This means that they have little or no money to save for the future.
About 45 percent of consumers are in this situation and would rather use what little cash they have left to pay off their debts.
Part of the problem is that many Britons don't think their wages keep up with the rising cost of living, so they spend their money on things like food. If there is money left over, it is usually spent on entertainment or "feel good" items like clothes, music, or DVDs.
The backlash this generation will face in the future will also hurt the older generation, which will look to the consumers of today for help in the future.
Many consumers seem to be most worried about getting a bad credit score. They would rather use their money to take care of short-term problems than risk the consequences that come with a bad credit score.
Most consumers say that having an easy way to get money would solve their problems, but most of what they want is unlikely to happen, like winning the lottery or having a rich, usually unknown, relative die.
Many homeowners have found that the truth is often much simpler. Given that property values rise by an average of 10% per year, remortgaging a home can free up money in a bigger way than most homeowners realise.
By going to a mortgage broker who specialises in remortgaging for people with bad credit, the equity can be put to good use and help stabilise a person's financial future. Using a remortgage as a way to fix a bad credit score is also a good idea because the homeowner and the lender can agree on a payment plan that fits their needs.
