Nearly half (49 per cent) of UK residents are either concerned or very concerned about their current financial situation, Gocompare has claimed.

The consumer services price aggregator noted that with the costs of living soaring ever upwards, 60 per cent of people said that lowering outgoings and reducing credit cards and loan debts was their highest financial priority for the coming year. In a study involving more than 1,000 people, such concerns as buying a house were the biggest issue for a comparatively small number of consumers, with four per cent of those questioned identifying this as their top priority. Higher up the list was increasing the amount of money that was being deposited into savings schemes and individual savings accounts, which was a priority for nearly a fifth (19 per cent) of those interviewed.

Other worries such as increasing pension payments, re-mortgaging and investing in stocks and shares were a substantially lower concern, with just one per cent saying that the latter was their top priority. The group also found that when it comes to economic uncertainty, younger generations are most worried about the stability of their financial situation in an increasingly gloomy consumer environment. According to the firm, nearly 65 per cent of 16 to 24-year-olds said they were either concerned or very concerned about ability to weather the storm, compared with 39 per cent of over-55s.

For those who have been unable to make ends meet in recent months as the costs of living soar, taking out a debt consolidation loan may prove an effective way to keep the boat steady in the impending financial storm. In spreading out payment commitments over longer periods of time, people may find that a loan of this type allows them to increase the proportion of their monthly income left at their disposal.

In regional statistics, it seems that residents in Manchester and Southampton are feeling the pinch the most. In each of these cities, 58 per cent of people said they were either concerned or very concerned about their finances. Meanwhile, citizens in Sheffield seem to bearing the brunt of the credit crunch with relatively few money worries, with 37 per cent stating that they were either concerned or very concerned about the health of their finances.

Research also indicated that, when it came to finding ways to rein in spending, 55 per cent said they would look to secure a cheaper car insurance quote using a price comparison site. When it came to home insurance, this figure stood at 52 per cent.

Commenting on the statistics, Hayley Parsons, chief executive of Gocompare, said: “This research shows just how worried UK consumers are about rising prices and their personal finances. It’s never been more important to save money wherever you can and shopping around for your home and car insurance is a great way to try and save money.”

Looking for cheaper deals may be particularly important in the coming months. According to recent data from the Bank of England, the number of people who struggle to keep up with personal loan repayments is likely to increase in the third quarter of the year as the credit crunch continues to bite.

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