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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 company's index measuring consumers impression of their personal financial situation over the past year was shown to have fallen by three points to arrive at -11, the lowest it has been since December 1995. Meantime, predictions over how they will manage money over the forthcoming year is equally bleak. This index is at -4, a decline of 17 points from May 2007.

Due to such concerns about their personal finance situation, it is quite plausible that people are failing 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 purchase, which could include a car or house, using low rate loans to fund such a purchase may be advisable.

And with buyers holding such doubts about their financial situation, it is quite possible to think that more people will want to think a little more about saving for the future. However, this is not the case as the index that tracks whether people think that now is currently a good time to plan for their future has slipped. Down by three over the month of May to stand at 25, the index stands ten points lower than during the corresponding period in the previous year.

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 Consumers who are worried about their ability to manage over the rest of the year may find it useful to take out a cheap loan. In doing so, this could enable consumers to meet various demands on their monthly expenditure at once, leaving them with one lower, more affordable repayment to make each month. This might be of assistance to a significant number of consumers after Michael Coogan, director general for the Council of Mortgage Lenders, expressed disappointment at the Bank of England's decision to keep interest rates unchanged last month. He claimed that although most consumers should be ok, the housing and mortgage markets will encounter problems over the rest of the year. Mr Coogan advised those worried about their ability to manage their money to contact their loan officer or a financial advisory service immediately.