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An increasing number of Consumers are becoming worried about their finances, according to a recent report.

In a recent study undertaken by Gfk NOP, it was unveiled that the nation's financial situation has continued to worsen. The research firm indicated that the overall index measuring British opinions on the state of the economy reached -29 during may. A figure such as this represents a fall of five points from the -24 seen in April and down from -2 which was seen in May 2007.

The firm's index measuring consumers perception over their personal financial situation during the past 12 months was shown as falling by three points to stand at -11, the lowest figure recorded since the end of 1995. Meantime, predictions over how they will control their finances over the next year is similarly grim. This index is at -4, a fall of 17 points from May last year.

As a result of worries about their current financial situation, it is probable that people are finding it difficult to meet demands on their spending such as credit cards, loans and domestic bills.

In addition, the measure that tracks how the UK economy has fared as a whole over the previous year stands at -58, a decline of 40 points from the study conducted 12 months ago and the lowest figure recorded for more than 15 months. Furthermore, expectations about the nation's general financial situation stands at -39.

Further research from the firm also revealed that the index used to measure whether or not buyers think that it is now a good time to make a major purchase has continued to slip. It currently stands at -32, a fall of eight points from April data and 36 down on the May 2007 figures. The recent figure was also noted to be the worst score ever recorded since Gfk NOP began its study in the over 20 years ago.

However, for those who are considering making a major purchase, which may include a car or home, using a low cost personal loan to finance such a purchase may be advisable.

And with people having such concerns about their financial situation, it is quite plausible to think that more people will want to think a little more towards putting cash away for the future. However, it would appear that this is not necessarily the case as the index tracking whether people think that now is currently a good time to plan for the future has fallen. Down by three over the month of May to stand at 25, the index stands ten points lower than during the corresponding period last year.

Commenting on the figures, Rachael Joy, from GfK NOP's consumer confidence team, said: "UK consumer confidence continues its decline and we are seeing levels not recorded since 1990; we are at a huge 27 points lower than this time last year. Buyers' confidence in the economy over the next year, plus a reluctance to make major purchases, reflect the popular expectation of a recession - both these measures are at the lowest level on record. The future months may see even a further fall in confidence, as inflation going up and dropping house prices make reigning in their spending even more likely to the UK consumer".

Those people with concerns about their ability to cope over the next year could be recommended to take out a low rate loan. By doing so, this may allow buyers to meet various constraints on their monthly expenditure at once, leaving them with just one affordable repayment to make each month. This might be of assistance to a large number of consumers after Michael Coogan, director general for the Council of Mortgage Lenders, expressed disappointment at the Bank of England's decision to maintain interest rates last month. He claimed that although most consumers should be ok, the housing and mortgage markets will encounter problems over the course of 2008. Mr Coogan advised those worried about their ability to manage their money to contact their loans provider or a financial advisory service as soon as they can.

Mark Dawson writes for the the Loan Arrangers where you can compare UK loans and apply online for the cheapest secured loans, and adverse credit loans.