British Consumers Spending More Than They Earn
Most of us, at some time or another, have been in that situation where we have run out of money from our salaries before the end of the month, sometimes there just seems to be more month than money! But according to a joint recent survey by GE Money and YouGov, it appears that almost a quarter of the British public feel as though they are out of control with their finances and, alarmingly, an additional 8 per cent of us claim that they spend more each month than they have coming in, on a regular basis.
The research also shows that these worries about our finances and general concerns regarding the credit crunch are starting to be felt on the high street, with more than a third of us cutting back on what we spend each month compared with between six and twelve months ago.
Many individuals are also reluctant to spend on credit cards, or apply for a new loan for luxury items, choosing instead to make an active effort to reduce the balances on their outstanding loans and cards. Despite these cut backs and more of a common sense approach towards our finances, almost forty per cent of adults claim that they have no money left before their next pay cheque is due, whether this is on a weekly, or monthly basis.
The situation is likely to get worse in the short term, as we enter summer and many of us go on our holidays, often spending more than we would ordinarily. The publisher of the report has urged individuals to ensure that they sort out their finances and don’t take their eye off the ball throughout the holiday season, making sure that all their loan and credit card payments are kept up to date.
The report also highlights that, despite the doom and gloom, a third of the population claims to have no loan or credit card debt at all and almost half of us manage to save money every month on a regular basis.
