Managing your finances can be overwhelming, research[1] has revealed that a third (33%) of Brits are worried about their financial future and in some cases, worries are so severe that some Brits cannot sleep due to their money concerns[2].

As a result of this, debt management company Lowell has researched[3] the UK’s biggest money fears and responding to the research, have offered top tips to help ease Brits’ worries when it comes to their personal finances.

The financial situations that Brits fear the most

1. Losing the ability to pay monthly outgoings

Lowell’s research revealed that almost one in five (19%) Brits said that losing their ability to pay monthly outgoings was one of their top financial fears.

Losing the ability to pay your monthly outgoings can be a scary time, but it’s important to remain calm. If you are struggling to pay your bills, contact your provider and explain your circumstances. They may be able to agree to a new payment plan, or even temporarily pause payments while you re-organise your finances. Refrain from ignoring the issue, as this can result in debt, interest and (in some cases penalty fees) building up, which will only cause more problems in the long run.

If you do find yourself struggling to pay your monthly outgoings, ask for help. There are several organisations across the UK that provide guidance and support for those struggling financially, so don’t be embarrassed to seek help.

2. Being a victim of payment card fraud

Another common financial fear amongst Brits is payment card fraud.

With shocking statistics revealing that nearly one-fifth (18%) of Brits have experienced payment card fraud[4], it’s no surprise that 18% of the UK have said that they fear it happening to them.

Fraudsters can be extremely clever and as technology advances, it can be difficult to spot fraudulent risks. However, there are several ways that you can protect yourself from cyber criminals:

Always use strong passwords and ensure that you are not using the same password for each of your accounts.
Be suspicious if you are approached with a huge problem, requiring immediate action. If you’re contacted out of the blue, with a message along the lines of: ‘Act now, or be fined thousands of pounds’, be aware that this is a common scare tactic used by scammers to try and pressure you to act out of panic.
Make sure that you never give out personal information or send money to anyone you don’t know or trust.
Always report scams to the police on 101.

3. Not having any money in a savings account
The data also revealed that 17% of Brits admitted that one of their biggest money concerns was that they had no money in a savings account.

Although savings in the bank can offer a sense of financial security, it’s important to be realistic when it comes to managing your own finances. If you don’t already have a ‘rainy day fund’ to fall back on it’s never too late to start one, but don’t overwhelm yourself.

Before you get started, you will need to create a realistic budget to calculate how much you can afford to put aside each month. Make sure that you are being practical and honest with yourself about your outgoings. If you’re deposting more than you can afford into your savings, you’ll find yourself constantly dipping into your fund because you’ve overstretched yourself. Try saving little and often, as and when you can afford it. These small contributions will eventually build over time.

Finally, do not compare yourself to others. Everyone’s financial situation is different, and what works for some may not work for others.

4. Not having a big enough pension pot to retire with

Not having a big enough pension pot to retire with is one of the top money worries for 17% of Brits.

For many, approaching retirement can be a very exciting and rewarding time but financially, it can often be a daunting prospect. However, there are several things you can do if you’re concerned about your pension pot.

A great first step is to check when you’ll be eligible for a State Pension. The longer you go without touching your State Pension, the more you’re likely to get in the long run. Having the right to a bigger pot can be a big help if you’re worried about your finances post-retirement.

Secondly, if you’re in permanent employment, all employers must offer a workplace pension scheme by law. If you’ve previously opted out of a workplace pension, you have the legal right to opt back in again. Speak to your employer and see what they can offer in terms of pension contributions; some employers may be able to match your contributions if they are over a certain level.

5. Feeling overwhelmed with debt

Finally, feeling overwhelmed with debt was the fifth most concerning money fear in the UK, affecting 15% of Brits.

If you’re ever concerned about debt, it’s crucial to know that you are not alone and there are many organisations out there that can offer information and advice. Although it can be difficult, understanding the amount of debt that you have is a really important step when facing the issue in front of you. Once you know your financial situation, you can create a plan.

Richard Lane, Director of External Affairs at StepChange Debt Charity comments, “It’s good to talk about money, and seeing people sharing their financial fears is a big reminder that if you’re stressed about your own financial situation, you’re far from alone. Yet we know from our clients that people often feel scared or embarrassed to open up if they have debt problems, and can end up letting things build up for a long time before taking action.

We’d urge anyone feeling that way to take the first step – help is out there, and if you contact a debt advice charity like StepChange you’ll receive friendly, professional, confidential advice to help you find a solution. You can talk to someone or get full debt advice online, whichever suits you best. No-one needs to suffer in silence for the sake of debt.”