Difficult for most Britons to maintain lifestyle

According to the Axa, even though most people in the UK think that they belong to the middle class, the reality is that they are not able to maintain the lifestyle of the middle class of the nation due to shortage of cash.

It has come out after a study that the common belief says around one-third of the people living in Britain belong to the middle class strata of the society. However, the truth is that only one in five people are able to meet the standards of the middle class which actually exist. To belong to the middle class of the society, the requirement for people to be included is around 62,000 pounds being coming in and spent in the household annually. The middle class is also required to own their house and also two cars. Actually, the figures that are stated are different from the truth.

Axa says that according to the definition, the people who belong to the middle class of the UK should be having wages which are included in the range of 70-90 percentiles of the total wage earners. An average UK resident earns 35,000 pounds yearly and the minimum requirement of 62,000 for being in the middle class is almost double. This shows that the figures that are stated are far from the actual financial scenario which exists in the UK.

Even though these figures suggest something else, it has been seen that the level of earnings for the Britons has gone up from the past. Most Britons are still far away from joining this group. Still, we can see that there has been an improvement of 5% in the people who met this criterion since 1998 when the figure was 15% and now it is 20%.

A spokesperson for Axa Finanical Task Force, Steve Folkard states, “It has been a long time now that people have started to think that they belong to a class of the UK which forms a majority. This was initiated after the New Labour days and rise of the ‘classless society’ happened. This perception may have come from the inflation that has been seen in the housing society that people think they belong to the middle class. However, there is something in store for such people. It has now been shown by researches that a very small group of households constitute the middle class. Also, the rising costs of living and maintaining standards have in fact also been felt by the middle class of the UK.”

It is therefore concluded that the factors like tightening of the personal loans criteria and credit, a narrowing in the housing market, rising cost of living etc can result in the reduced spending power of the people even when there has been seen a rise in the average incomes that they have.

Those people who have in mind some plans about improvements that they want to incorporate in their houses or have some other financial commitments that they are not able to complete, a secured loan would prove to be very useful in such a situation. There have been increases in the cost of home maintenance as well with the expenses like mortgages, council tax and utilities on the rise. Around 10,000 pounds has to be spared on an average by the middle class Britain household to take care of all these needs and the extra equity required can come in by way of a secured loan.

Prudential also conducted a research which says that the problems of the UK people related to their financial commitments have been rising at a fast pace. Around 52 percent people said that their biggest concern were their money matters and their inability to complete financial commitments.

Breaking secured loans news is provided by infoaboutloans.co.uk

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