Debt concerns as Britons ‘overspend their budgets’

A significant number of people could be dicing with debt as it has been revealed 60 per cent of Britons exceed their budgets each month.

Research carried out by moneybasics.co.uk has shown that £41 billion was overspent in total last year by people who failed to stick to their financial plans.

It disclosed that the average Brit uses £154 more than they intend to each month when compared against their self-imposed allowances.

Moreover, one in 12 of those who break their spending patterns do so by going £300 over their limit every four weeks.

Chris Tapp, spokesman for the website, said of the trend: “Sadly it is this type of thinking that has trapped thousands in a cycle of misery and debt.”

The regularity in which people exceed their budgets is “extremely worrying”, he added.

Jasmine Birtles, founder of Moneymagpie.com, recently stated that women are better at managing their money than men, as they are accustomed to looking after the family home.

Sam Mond, operations director of Prepaid MasterCard ClearCash also commented: “It’s clear to see that people are keen to recover from the effects of the recession, but wanting and doing are two different things.

“ClearCash launched last year offering a tool called BudgetMaster, which actually helps people really get to grips with how and where they’re spending their money and going over budget.

“Over time, the tool helps them get back on top of their finances and manage their cashflow more effectively without going overdrawn or experiencing more money worries.”

By Joe Shervin