Nearly 5 million Brits outspending income
Posted on 23 January 2008 by
Nearly five million people in the UK are living beyond their means, says a study by comparison website uSwitch.com.
And many are running up debts – with half of the 4.8 million total relying on an overdraft to fund their lifestyle. A further fifth have no money at the end of each month, the research found.
Uswitch says that, allowing for non-salary income such as that from property rental and dividends, the average Briton earns £2,607 each month. However, they spend £1,229 on essential items, £865 on non-essential items and £356 to repay debt, leaving just £157 unspent at the end of the month.
"We are caught in the grip of a spiral of conspicuous consumption where it's no longer enough to keep up with the Joneses, but instead we want to live like our favourite celebrities," said Ann Robinson, uSwitch's director of consumer policy.
"But it's clear that our salaries can't keep up with our... lifestyles," she added. "With the credit crunch beginning to bite, consumers need to start paying serious attention to their spending habits."
The study examined data from the Office of National Statistics along with original research by YouGov.
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