Brits are ‘flirting with debt’ by living beyond their means

Many people in Britain appear to be flirting with debt because they continue to live beyond their means, new research has indicated.

A survey conducted by Bright Grey has revealed almost seven million people (14 per cent) in the UK are spending more than they earn in an effort to fund their lifestyle.

The protection specialist noted the findings highlight an alarming disregard for personal income across the nation.

It was shown that an additional 4.9 million individuals (ten per cent) admitted they are clueless when it comes to the amount of cash they are spending each month in relation to their earnings.

The investigation suggested the average adult requires £1,706 net income every four weeks to live life comfortably.

However, this figure is 27 per cent greater than the current average monthly wage.

The average worker is therefore falling short of the ideal salary to support their lifestyle over a year by £4,320.

Moreover, the study revealed that despite this income shortfall and the bite of the recession, 82 per cent of respondents have not altered their spending habits accordingly.

Indeed, eight per cent even admitted they have increased the amount of money they are currently using to purchase goods.

Proposition director at Bright Grey Roger Edwards said: “Even in an Age of Austerity the public’s spending shows no sign of waning, as the average UK adult continues to spend beyond their means and rack up debt.”

Recent research carried out by M&S Money found many parents in Britain believe their offspring are more likely to encounter debt problems when they grow up compared to when they themselves were younger.

By Joe White