Households 'face further financial burdens'

By Sarah Engle, Thu 27 Jan 2011 - Published in Banking

The financial pressure being placed on the UK's households is unlikely to slacken in the coming months, it has been claimed.

Recent research published by Co-operative Insurance and Shelter showed that almost 28 per cent of UK adults earn less each month than their outgoings, with the average shortfall standing at Ł165.

Commenting on the findings, moneymaxim.co.uk managing director Mark Bower said they show the difficulties families currently face in budgeting effectively.

"As food, utility and other household bills have recently increased month-on-month, those without a savings base have found themselves living from day-to-day and even less able to save for larger bills or purchases even in the short term," he continued.

Mr Bower added that many households would have turned to credit to cover their shortfall in the past, but he noted that the cost of borrowing money is becoming increasingly expensive and people are finding it harder to secure loans.

A recent poll by first direct found that 53 per cent of UK adults wish they had paid off more debt over the course of 2010, making this the nation's largest financial regret.

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