If you were wondering what the true impact is of the current economic crisis and austerity measures, we now have a much clearer picture on how the finances of many families are suffering in real terms. It has been revealed that family finances are likely to equate to the levels we had as far back as 2005 - that is a fall back to levels 6 years ago.
The reasons behind this are mainly due to the fact that salaries are either rising at pathetic rates, or for the most part, are actually continuing to fall when more and more companies are struggling to keep their heads above water during these hard times. You also need to bear in mind that taxes and cut-backs are paying a weighty toll on family incomes.
With this in mind, it is no wonder that people are looking to measures such as Equity Release plans to tide them over. We all hope for better years in the future and the mentality seems to be that we need to do all that we can to protect our way-of-life and ensure that our family does not suffer too much.
This shocking statistic is definite evidence of the fact that the austerity measures implemented by the Government are hitting every household much harder than was originally forecast. Many people were opposed to such a stringent programme being introduced to take care of the debt the country is in; they favoured a longer-term and far less painful plan.
This is all a catch 22 situation at the moment. Many people are so grateful to still have their role of employment at the moment that they would not dare to rock the boat, so to speak. It would appear that employers are fully switched into this mentality and for the most part, are taking full advantage of this.
