Britons 'Struggling With Finances as Prices Rise'

Four in ten Britons are at risk of falling in to debt as they battle to make ends meet, a new poll suggests.

Analysis from data firm Mintel, which was released today, shows that, as well as the 40 percent who are facing financial difficulties, just 51 percent of people now consider themselves "comfortably off". This figure is down by 13 percent from two years ago, and lays bare the impact which the credit crunch and rising prices are having on personal finances in the UK.

Recently, food and fuel costs have been on the up, with inflation spiking up to 3.8 percent last month. This figure is a full 1.8 percent above the Bank of England's own target rate, and looks set to rise still further over months to come. Moreover, the ease with which people can secure a loan - a common method for surviving tough times - has been severely impacted by the credit crisis.

Toby Clark, senior finance analyst at Mintel, said: "The good news is that the vast majority of people can still afford to make ends meet.

"But there has clearly been a deterioration in people's perception of their financial situation over the past two years, as rising interest rates and higher living costs have really started to take hold."