In a major new research study carried out by YouGov on behalf of International Personal Finance (IPF), a leading international provider of consumer credit in growth markets, more than two thirds (68%) of its customers said the cost of living was their number one concern
Of the 11,000 people questioned across Europe and Mexico by YouGov for the first IPF ‘Financial Wellbeing and Inclusion Report’, other areas of concern were the fear of unemployment (11%) and the basic cost of education (4%) and health care services (4%).
Whilst all of IPF’s European markets cited the cost of living as their main concern, in Mexico, crime in the neighbourhood and unemployment were jointly the single largest concerns (28%). In this growing Latin American economy, only 13% of those customers polled said the cost of living was their main concern.
Other findings from the study showed that three in five people (60%) expect their national economies to deteriorate in the next twelve months and this lack of confidence is notably higher in the more northerly countries including the Czech Republic (68%), Poland (67%), and Slovakia (66%). In Hungary, nearly half (45%) expect the national economy to get a lot worse. In contrast, people in Mexico and Romania have more confidence in the stability of their economies and the prospect for improvement over the next 12 months.
The anxieties surroundings the high cost of living is also the main driver for those people (35%) who think that the financial position of their own household will deteriorate over the next 12 months. People in Czech and Hungary are the most pessimistic with four in ten four saying things will get worse, which is mainly driven by the increased cost of living and fear of unemployment. In Mexico and Romania, people are more optimistic about the future, which is predominately influenced by an increase in earnings or a change in employment.
John Mitra, Corporate Affairs Director, IPF, said of the findings: “We thought the fear of unemployment might register higher especially with unemployment increasing across the Eurozone, but it is clear a large majority of consumers are most concerned by the high cost of living. Given the continued difficult economic backdrop and high commodity prices, we expect this anxiety to register highly for some time.
“The difference between Mexico and Europe is interesting. Mexico is forecast by some commentators to become the largest economy in Latin America in the next decade and this is reflected in much greater confidence in the national economy and their own household finances.
“The provision of short term credit to help people through lean times is important and IPF will continue to lend responsibly to help people with their immediate borrowing requirements.”
The Financial Wellbeing and Inclusion Report is available here.
Further information
Contact Nick Jones, Head of Communications, International Personal Finance
+44 (0) 113 285 6815
