A quarter of adults in Yorkshire expect their personal finances to improve in the next six months, figures have revealed.
And fewer than one in five think they will have less money to spend in six months’ time, according to a poll by insolvency industry body R3.
The survey said “economic pessimism” was at a record low – with just 16% of British adults expecting their personal finances to get worse in the next six months. By comparison, 26% of British adults expect their finances to improve – the third highest proportion on record.
But worries about personal debt levels persist, the survey found.
Chris Wood, Yorkshire R3 committee member and partner at Clough Corporate Solutions in Cleckheaton, said: “The improving economy is finally starting to affect how British adults see their own personal finances. It’s taken a while, but the personal finance picture is finally looking up after years in the doldrums.”
“However, the number of people with debt worries or repeated financial struggles remains a source of concern.”
Despite the improving economic optimism, 40% of adults in Yorkshire said they were worried about their debts, slightly lower than the national figure of 46%. And 47% said they often or sometimes struggle to payday – higher than the UK average of 41%.
In Yorkshire, credit card debts are the most common cause for debt worries, while the rising cost of living – meeting food, energy and transport bills – was most frequently blamed by those who struggle to make it to payday.
Mr Wood said: “Despite increasing economic optimism, there is a group of people who consistently struggle from week-to-week or month-to-month.
“Although falling inflation should ease cost of living problems, relief is only coming after years of prices rising far faster than wages. It will take a while before families can regain some financial breathing room.”
Mr Wood said: “It’s all too easy for financially vulnerable people to get caught in a debt trap where debt is needed to finance other debts, leading to a vicious cycle from which it is very difficult to break out of without help.”
