Brits Overspend on Essentials
Brits are struggling to keep in budget with the rising cost of living as many are spending more money than they have coming in, new research show.
Nearly a third of adults have to overspend each month on essential items, The Co-operative Insurance and housing and homelessness charity Shelter revealed.
Rent, mortgage payments, living costs and fuel bills have become unaffordable for many with some experiencing a shortfall of £165 a month, and 26 percent uncertain whether they can pay their bills on time.
“A large number of people are being forced to spend more money than they can afford,” said Lee Mooney, The Co-operative Insurance, home insurance head.
A further 70 percent of people are worried about their cash flow, and the 25-34 year-old age group are the most concerned with 74 percent admitting to having money worries.
“It’s shocking to see how many people simply don’t have enough money to make ends meet and shows just how hard people are finding it in this tough economic climate,” added Campbell Robb, Shelter chief executive.
Prevent Overspending with a Prepaid Debit Card
If keeping your outgoings affordable is tight and you always tend to go over budget each month, then a prepaid debit card could prevent you from overspending.
January is typically a time when consumer struggle to get back on their feet financially following the expense of Christmas.
The Christmas period saw 11.7 percent of all UK rent go unpaid or late, a rise from 9.7 percent from the previous month, The British Property Federation (BPF) revealed.
Now is the time to reign in your spending to cope with the VAT rise and the impending benefit cuts.
A prepaid debit card does not have an overdraft facility so the user can only spend the amount they loaded onto the card.