1/3 of Britons miss bill payments and rack up debts

One-third of Britons are not paying their bills on time because they cannot afford to, newly-released research has discovered.

Thinkmoney surveyed over 2,000 adults about their financial situation and the study highlighted how many people are failing to adopt a prudent attitude when it comes to their outgoings.

Some 32 per cent of respondents admitted they had spent money that was needed for bills on frivolous purchases on more than one occasion, with 18 to 24-year-olds (42.6 per cent) the most likely age group to partake in this activity. 

Ignoring bills is not advised, as aside from incurring late fees and racking up debts, consumers will also damage their credit rating and therefore may struggle to get a mortgage or personal loan in the future. 

One of the main causes of overspending was that too many people (51.1 per cent) only draw up a mental budget, rather than writing down on paper exactly how much money they have coming in and going out.

In terms of regional differences, residents in the south-west (58 per cent) were the most likely to mentally budget, while those in Northern Ireland (42.9 per cent) are the least likely. 

Worryingly, 14 per cent of those questioned do not put any plans in place to make sure they can pay their bills, which means it is down to pure luck whether or not they will have enough money at the end of the month.

Ian Williams, director of communications at thinkmoney, said: "It's perhaps no surprise that a third of people don't have the money available to pay their bills when they arrive, as so many of us rely on mind power alone to budget. Not having a careful budget in place can increase the risk of overspending and being left without the cash you need for bills."

By James Francis