Britons are living beyond their means, insurer finds

30/07/2008

More and more people are finding themselves unable to make ends meet due to increasing inflation.

The new Moneymood survey from Legal & General shows that the number of Britons who said that they were "living beyond their means" has increased by eight per cent from May to June - which means that 5.3 million are struggling financially in this way.

Regionally, residents of London and the north of England were found to have been hit hard by the credit crunch, with 18 per cent and 11.5 per cent of residents respectively saying that they are spending more than they earn.

Nationwide, a total of 43 per cent of people were found to have monthly bills and debts currently exceeding their earnings.

Kevin Still at EuroDebt commented: "Rising costs of living and interest charges on credit are really taking their toll. I believe that we are seeing a major phase of better budgeting and debt consolidation that can only be sustained for a limited period of time.

"Households with a serious monthly deficit after trimming costs really do need to look at alternative debt solutions and taking professional advice to avoid putting their home at risk."

Tags; Housing Debt and Bills, Budgeting Advice,

Regional Debt Advice; Debt Help London,

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