Those Living Alone End Up in Debt
Singletons are finding it tough to make ends meet as their lifestyles require them to constantly overspend, new research shows.
According to Bright Grey’s salary gap study, one in six adults living alone are overspending on their lifestyles as they are unable to live within their means.
Single people, living in shared accommodation, are the group most likely to overspend, as 40 percent enjoy a lifestyle their salary cannot afford to meet.
“There is a real concern that for many people, high mortgage and rental prices can mean that spending choices are limited,” said Roger Edwards, Bright Grey’s proposition director.
“More worryingly, it seems that the average salary is far too short for some, who just can’t help but overspend in order to maintain their existing lifestyle or to make ends meet.”
The average income for adults living on their own is £1,267 a month, and is £327 short of the income people feel they need in order to live a comfortable life.
A third of adults admitted in the study that they overspend however, because they feel they have to, and 24 percent said they do it because they enjoy their current lifestyle too much to give it up.
Millions of adults are falling into debt as result, with nearly six million currently using credit cards and loans to fund their activities. A further one in six admits they rely on their bank overdraft.
How to Manage Your Money
Overspending each month is a dangerous habit to get into, especially if you rely on credit cards as the interest you rack up on your balance can escalate.
If you are unwilling to give up your lifestyle, investigate how a prepaid credit card could help you spend within your means, and prevent overspending.