Brits urged to think about their debt

WEDNESDAY, JUNE 07, 2006

Too many Britons are failing to consider their finances, instead worrying about matters which they cannot control, it has been claimed.

New research has suggested that many people in the UK spend time worrying about matters which they can do nothing about, when instead they should be looking into ways to clear their debt problems. According to a study carried out by Prudential, not enough people are looking at the debt that they are in and are spending more time worrying about things they are unable to control.

The company suggests that consumers in debt should be spending time calculating their financial options, such as taking out a debt consolidation loan, rather than being concerned about things such as bird flu. The report highlights the fact that recent media hype surrounding matters such as bird flu has led to the public having an unnecessary fear over the potential of contracting the disease, while financial matters are fading into the back of their thoughts.

However, Prudential warns that taking positive action on debt troubles, for example by taking out a debt consolidation loan, will prove far more profitable in the long-term than looking at ways to beat a virus which may not even make the leap to one that can be transferred from human to human.

Other factors preying on consumers' minds are the threat of so-called superbugs, which have caused havoc in some hospitals, as well as the danger of a terrorist attack. But Paul Cowman, head of protection at Prudential, points out: "You're far more likely to lose your job and struggle with debts than be a victim of terrorism or superbugs."

Mr Cowman added: "An age of fear is gripping the country and it is entirely irrational."

While people are becoming increasingly concerned about issues such as bird flu and security, many are becoming more relaxed about their finances, despite the high levels of consumer debt in the UK. There is concern that the public is failing to properly look into solutions to their financial difficulties and as such may be overlooking the possibility of taking out a debt consolidation loan that could significantly ease the burden of debt.

Dr Peter Marsh, of the Social Issues Research Centre, commented that people today "lose a proper focus on risk and get diverted away from real threats", such as financial insecurity, which could cost a person their home. It is therefore important that people focus on things in their lives which they are able to influence, such as personal debt.