Britons need to take financial "reality check"

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Britons need to take financial "reality check"

Fri 20th Jul 2007

The financial environment in Britain may be far more perilous than many consumers are prepared to admit.

A new report released by the Alliance Trust shows that while the financial situation for Britons has been eased by falling utility prices and firm economic growth from last winter, a range of factors continue to burden them.

According to the report, real earnings growth has reached its lowest point in the ten years of the study, with Shona Dobbie, head of the centre, indicating that lower earnings growth, higher mortgage repayments and chronic council taxes were just some of the issues affecting us.

However, Ms Dobbie said that consumers continue to "borrow big and spend bigger" and that the financial situation was not "hitting home".

Alliance Trust is consequently urging British families to take a reality check on their financial situation, suggesting that a fifth of homes fall well short of the financial comfort zone.

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