Moneysupermarket Shows Cash Concerns Of Country Dwellers
While recent increases in the cost of living are causing a spending squeeze for many people, such difficulties are affecting some people more than others, it has been reported.
In research carried out by moneysupermarket it was revealed those living in rural parts of Britain are being hit by rising costs harder than their peers in urban areas. The price comparison site reported that these people are not only earning less money but are also finding food, diesel and petrol to be more expensive. Such difficulties were attributed to the fact those in villages are more likely to rely on oil for their heating and that they live far away from major supermarkets and retailers.
Those struggling to manage with recent rises in the cost of food and fuel may find that their capacity to manage other spending commitments such as personal loans, credit cards and mortgage payments is squeezed further.
As an example of the financial difficulties which rural communities face, moneysupermarket pointed towards the north-west village of Patterdale where the cost of petrol is seven pence per litre higher than the national average. Meanwhile, the typical income stands at 19,200 pounds, with council tax for a band D home at 1,460 pounds. Furthermore, it was stated that the majority of homes in the village require heating oil or bottled gas – commodities which have doubled in cost over the past 12 months. In comparison however, the average salary in Edinburgh is 20,000 pounds and council tax for the same band of property is 300 pounds cheaper than Patterdale.
Clare Francis, site editor for moneysupermarket, said: “A stark rural reality is starting to hit home now. Over five million households without gas are paying double what they were last year to heat their homes. And this urban-rural divide, sadly, also extends to two of the other essentials of life – food and petrol or diesel. Having to travel up to 20 miles to the nearest supermarket will typically add six pounds in fuel costs, so villagers are increasingly relying on the corner store. Of course, these shops can’t buy in bulk like the major supermarkets so they have to charge more and they can’t offer the same range of foods either.”
She went on to report that moves by the Bank of England’s monetary policy committee (MPC) to cut the base rate of interest have done nothing to assist homeowners in terms of managing their money more effectively. Ms Francis reported that although the MPC has reduced interest rates three times since December 2007, mortgage rates have continued to increase.
Whether in a bustling city or living in a small country village, people with concerns about their ability to manage with rising living costs might wish to consider getting a debt consolidation loan. By applying for this kind of loan borrowers could find that they can merge various areas of financial demand into a single low-cost monthly repayment. A consolidation loan may be recommended after recent figures by the Alliance Trust Research Centre showed that the price of petrol has increased by some 24 per cent over the last 12 months, with electricity costs rising by 11 per cent.
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