Nine million Brits spend everything they earn each month…
Nine million Brits spend everything they earn each month and nearly a further five million spend beyond their means, according to a report from online comparison site uswitch.com.
Its research found that 19 per cent of adults only break even at the end of each month, with 10 per cent saying that they spend more than they earn on a monthly basis.
Consumers are increasingly relying on debt to fund their lifestyles, with over half of those living beyond their means, some 2.5 million people, relying on overdrafts to bridge the gap between their income and their outgoings.
Despite TUC figures showing that adult Brits are working longer hours than ever before, nearly a third have nothing left in their bank account at the end of the month, with many creeping into the red.
uSwitch’s Ann Robinson says: “Britain is suffering from a bad case of affluenza. We are caught in the grip of a spiral of conspicuous consumption where it’s no longer enough to keep up with the Joneses, but instead we want to live like our favourite celebrities. But it’s clear that our salaries can’t keep up with our ‘Hello’ lifestyles.”
Chiltern’s Joanne Gill says: “If your outgoings are exceeding what is coming into the household then it’s time to start paying serious attention to spending habits.
“More people are finding it increasingly difficult to secure credit, so the use of overdrafts and plastic to fund the gap may soon no longer be an option. That’s why alternative options, like debt management, are becoming more favourable, as they give consumers short-term breathing space from their debt stress whilst they reassess their situation.”
