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


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

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 It is now over 6 months old so the content may be out of date.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.

What next?

Compare the best savings rates
Compare credit cards at moneyfacts, the unbiased experts
Your Payslip Explained
9 steps to score on your credit rating

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Parents to spend £552 on children this half term

Autumn has truly arrived – and half term with it. This looks to be bad news for parents’ wallets, as research from American Express shows they will be spending an average of £276 per child this holiday break.

Are you still funding your children’s lifestyle?

While many parents like to provide financial support to their children while they grow up, often helping out with things like weddings, cars and university fees, others find that they fund more of their children’s lifestyle than they’d like.

Household spending on Christmas drops again

Brace yourselves: tomorrow we’ll be just 70 days away from Christmas. As 39% of Brits have already started their holiday shopping, research has found that household spending on Christmas has fallen for the second year in a row.