Older people face increased living costs, reveals Alliance Trust

According to a new study, the increased costs and commitments relating to finances are having a far stated effect on the ability of the UK citizens to be able to handle their monetary issues.

Alliance Trust Research Centre has carried out a study according to which people of all age groups are facing a rate of inflation which is much higher than the rate that has been set by the government as seen in the last month. The maximum effect of inflation has been felt by the people who belong to the older groups. The study says that a rate of 4.8 percent is being suffered by those people who are above 75 years of age which is around 45 percent higher than the rate which has been announced by the government of 3.3%. Those people who are between 65 and 74 years of age, they are facing a rate of interest of 4.3%. A rate of 4.1% is being faced by those between the ages of 50 and 64 years. The rate of inflation that has been announced by the government, which is around 3.3%, is being delivered as it is only to those who are under the age of 30 years.

Due to these factors, the borrowers may experience great difficulty in managing other financial commitments that they have made. Limitations on their spending are also imposed due to these extra expenses and the effect comes on to the commitments like credit cards, store cards, home loans, repayment of mortgages and household bills.

The last year has been seen to give a surge in almost every sphere of life and the expenses that are required to maintain the standard of living. Petrol prices have gone up by 20% in the last year. Also, a surge of more than 11 percent was felt in the utility expenses. A 9% rise in the cost of foods was also reported in the last year.

The only places which did not experience such a surge were the footwear, clothing and audio-visual industry. This helped the youth from feeling the pressures of the inflation since they spend more than average on these items.

The head of Alliance Trust Research Centre, Shona Dobbie says, "The economy is facing the problem of inflation which pertains to the pressure in the complete chain of supplies. For the consumer however, the pressure is limited to the basic goods and services which are important for survival. Also, it is these services only which are experiencing a steep rise in the prices. When most money is being spent on these services itself, where does that leave any scope for the things that are facing a fall in prices? Due to the high price of oil and shortage of food products around the globe, the prices are going to remain this way and less respite is going to be on offer to the consumers."

She also stated that within the short term itself, we will see a rise in the headline inflation more so. This will lead to the providers of financial services increase their rates of interest which will thereby slowdown the demand for the monetary products due to the longevity of the increase and an overall threat to the economy will be faced.

For those consumers who are finding it difficult to manage their expenses, it will be better that they opt in for low rate personal loans. With the money borrowed through these personal loans, the borrowers will be able to meet their financial commitments and expenses, consolidate their debts etc. According to study by Money Expert, around 2.7 million Britons were concerned about their financial constraints and such a personal loan would certainly help the borrowers in managing their finances.

Breaking personal loans news is provided by Info About Loans.

Summary

With the rising rates of inflation, a study by Alliance Trust Research Centre has revealed that people who are older are facing higher than the government rates of inflation. Low rate personal loans may be able to help the borrowers in meeting their financial constraints.

News Categories