Markit survey reflects dire financial situation for many

The Markit Household Finance Index tries to anticipate consumer behaviour in the coming months. The latest findings indicate that household finances worsened faster this December than at any time during the previous four months.

The findings are pretty grim readings, given that it's currently the season of goodwill and glad tidings for many people in the UK. In fact, the Markit survey suggests many of us won't be having a 'Merry Christmas'. The number of people insecure about their job grew at the fastest rate since April this December. This is unsurprising given that unemployment reached an eye-watering 2.64 million in the third quarter of this year.

Many of us are finding our incomes aren't rising in line with the cost of living, which makes it difficult to maintain the same standard of living enjoyed just a few years ago. In fact, the Markit survey indicates that many are experiencing the fastest drop in their income for over two and a half years.

While most of us still make the effort to buy Christmas presents, many are getting into debt to do so. Around 22% of households say they're in more debt than November, while only 15% are in less debt. Those in the lowest income group are getting into debt faster than those with middle incomes.

A spokesperson for debt management company Gregory Pennington commented: "While many people are feeling pessimistic about their finances, there are a number of things people can do to improve their own financial situation, beginning with a well thought-out budget and financial plan for the year. Anyone concerned about their level of debt may find advice from a debt expert could put them on the path to financial recovery."

Lucy Bower