More consumers pessimistic about their finances

Only a quarter of consumers believe their financial situation will improve over the next six months - down 10 percentage points from 35% a year ago.

The insolvency trade body R3's Personal Debt Snapshot paints a gloomy picture of household finances. It reveals that one in five consumers are putting off big financial decisions, compared to 14% this time last year, while over one in ten are falling behind paying their bills, compared to 5% in July 2010. The report also found over 44% of people are now struggling to make it to payday.