Brits overspending by £40 billion
Brits are stretching their budgets by more than £40 billion a year, according to new research.
A study by GE Home Money on behalf of Moneybasics.co.uk found that 77% of adults have set themselves a monthly spending limit.
Of these, 60% confessed going over budget every month, with an average over-spend of £154.
One in twelve confessed to exceeding their budget by more than £300 per month.
On the brighter side, 29% manage to stick to their budget, while 11% spend less than their budget.
“It is heartening that millions of Britons set themselves a monthly budget but the regularity with which they exceed these limits is extremely worrying,” said Chris Tapp, Moneybasics.co.uk spokesperson.
He added that easy access to credit has led many consumers to not worry about going over budget.
“Easy access to cheap credit has conditioned many to believe it doesn’t matter if they spend too much as they can always borrow to meet any shortfall,” he said.
“Sadly it is this type of thinking that has trapped thousands in a cycle of misery and debt.”