Families in the UK spending £1.8k a month on bills

Families in the UK are being forced to spend over £1,800 a month on household expenses.

Aviva's UK Families Report has found that people …

Families in the UK are being forced to spend over £1,800 a month on household expenses.

Aviva's UK Families Report has found that people are having to part with more and more money as the cost of living increases. Over the course of one year, individuals are spending £3,972 more on household expenses than they did in November 2011.

Steep rises in food, utility bills and public transport fares are at the heart of this hike, which means that consumers are being forced to cut back on luxuries so they can make ends meet.

Indeed, 39 per cent of families admitted they have borrowed money using credit cards, with the typical amount owed being £6,055. Personal loans also proved popular, as 22 per cent of respondents currently have one and, on average, owe £8,591.

Worryingly, 14 per cent of single parents said they have used payday loans, while nine per cent have turned to pawnbrokers.

If consumers find themselves owing too much money, then debt action may be required. Taking out a debt management plan will allow people to reduce their monthly repayments and freeze any interest charges they may be due to encounter. In order to qualify for informal measure, people must have debts above £1,500 and owe money to more than one creditor.

Louise Colley, head of protection sales and marketing at Aviva, said: "This latest report reveals a mixed bag of fortunes for UK families as they face higher living costs set against relatively stagnant incomes.

"However, it's promising to see that families are adjusting their spending habits to take account of these changes and good news that these growing expenses have not prevented families increasing their debt repayments or savings."

She added the fact that families are "getting their house in order" before looking to start a family bodes well for the future.

By Joe White

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