23% of Britons struggling to break even at end of month

Some 23 per cent of Britons are just about breaking even at the end of every month, newly-released research has shown.

According to uSwitch.com, these individuals are leaving themselves with no money in case of an emergency and so are facing a perilous financial situation. On top of this, seven per cent admitted they are spending more than they earn and so are having to rely on overdrafts (37 per cent), savings (28 per cent) and credit cards (23 per cent) to get by.

In total, 39 per cent of Britons are making cutbacks as they seek to make ends meet. Among the sacrifices being made include food (28 per cent), clothes (45 per cent) and coffee (12 per cent).

If people are not willing to compromise on their current lifestyle, then they could find themselves in a debt cycle that they cannot get out of. Individuals in this situation could look to take out a debt consolidation loan, as this should help them to reduce their monthly outgoings to creditors and give them some breathing space.

Michael Ossei, personal finance expert at uSwitch.com, said: "When it comes to balancing the books, we are treading a fine line. It will only take an unexpected price hike or emergency at home to push us over the edge and into the debt spiral.

"For many consumers, everything is shooting up except their income. Unprecedented hikes in essential bills such as food and energy are forming an increasingly large hole in people's pockets."

He added one in four people are still struggling to pay off debts from last year, so these individuals are finding the current economic situation particularly challenging, especially with Christmas around the corner.

Mr Ossei is encouraging every household to assess their outgoings to make sure they are not paying over the odds for anything, as settling for the first deal that comes along is never a good idea.

By Amy White