Millions admit they struggle with bills and debts - Money - News - Moneyfacts

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Millions admit they struggle with bills and debts

Millions admit they struggle with bills and debts

Category: Money

Updated: 05/08/2013
First Published: 05/08/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study by the Money Advice Service has found over 50% of people in the UK are concerned at their ability to meet bill payments and pay back existing debts.

Despite consumers displaying an increasingly positive attitude towards their financial habits, such as budgeting and shopping around for the best prices, a worrying 47% admitted that they are finding it difficult to live within their means as the cost of living remains high.

A third (34%) of this figure was found to be earning at least £30,000 a year.

The days just prior to payday are proving tough for a lot of people, with 36% of households cutting back on their spending until their wage hits their bank account. A further 14% claimed they regularly run out of money completely at the end of the month.

Using a credit card or store card for everyday purchases has become commonplace for 27% of spenders, with 19% admitting to just guessing how much they will spend before going shopping.

Whilst many consumers are relying on credit cards to cover regular spending, 90% admitted that they are worried about falling into a spiral of debt.

Living in such an age of austerity has, however, persuaded many households to adopt a more pragmatic and frugal approach to their money.

Around 88% agreed that saving up for a rainy day was important, with an impressive 84% keeping check on their income and spending.

An additional 93% said they always search around and compare the best prices before making a purchase.

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