According to a recent report, more consumers are worried about their financial situation.

In a recent study carried out by Gfk NOP, it was shown that the nation's financial outlook has continued to get worse. The company announced that the overall index which measures British opinions on the economy reached -29 during the month of may. A figure such as this represents a fall of five points from the -24 returned in April and down from -2 which was noted last May.

The company's index measuring consumers interpretation of their own financial situation during the last year was recorded to have slipped by three points to stand at -11, this being the lowest figure on record since the end of 1995. Meanwhile, predictions over how they will control their finances over the forthcoming year is similarly bleak. This index is at -4, a fall of 17 points from May 2007.

Because of such concerns about their personal financial condition, it is quite likely that people are struggling to meet demands on their budget such as credit cards, loans and domestic bills.

In addition, the measure used for tracking how the economy has fared overall for the previous 12 months sits at -58, sliding from -18 points compared to the study carried out at the same time last year, and the lowest figure recorded since 15 months ago. Furthermore, expectations about the country's general financial situation is down to -39 points.

It was also indicated in their research that the index measuring whether or not the public thinks that it is currently a good time to make a large purchase has continued to fall. Such a measure was unveiled to currently stand at -32, a reduction of eight points from April data and 36 below May 2007. This latest figure was also noted to be the lowest score ever recorded since Gfk NOP began carrying out research more than 20 years ago.

However, for prospective buyers who are thinking of making a significant purchase, which might include a car or home, using a cheap personal loan to fund such buying could be advisable.

And with consumers harbouring such concerns about their finances, it may be possible to think that more people will want to think a little more towards putting money 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 save money has fallen. Down by three over the course of May to stand at 25, the index stands ten points lower than during the corresponding period in 2007.

Speaking about the figures, Rachael Joy, from GfK NOP's consumer confidence team, said: "UK consumer confidence continues its decline and we are seeing levels not seen since 1990; we are at a massive 27 points lower than this time last year. Buyers' confidence in the economy over the next year, additionally 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 additional fall in confidence, as increasing inflation and dropping house prices make reigning in their monthly expenditure 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.