Consumers fail to plan finances

About a third of Britons are 'financial fantasists', a new study indicates.

Research conducted by National Savings & Investments reveals that some 33 per cent of consumers are taking out cheap loans and other forms of borrowing or counting on increased wages ahead of creating a plan to secure their financial future.

Just over half of the population (55 per cent) was reported to have not yet made any financial plans which consequently could lead to them incurring debt management difficulties in later life.

Senior savings strategist Dax Harkins said: "It's a real concern that such a high percentage of people haven't made a financial plan for their future and even more worrying that a significant number are basing their financial security on their future earnings potential.

He added that as there is "never any guarantee" that consumers will earn more in later life it was vital people start "financial planning and start saving as early as possible".

The findings also indicated that 35 per cent of Britons claimed to be worried about their finances yet do nothing about it.

Earlier this week, a Barclays and NCH study indicated that debt management difficulties have seen ten per cent of families go without food.

Stuart Pike is a Director of Inter Financial Limited, based in Guernsey in the Channel Islands. Through their website All About Loans Inter Financial offer advice and information which is all about loans and personal finance in the UK.