Financial “understanding, skills and confidence” lacking

In its survey, Citizens Advice Cymru found that 57 per cent of Welsh residents lacked a monthly budget and this is likely to be mirrored throughout the UK.

“The experience of Citizens Advice Cymru shows that a general lack of understanding, skills and confidence when it comes to managing money and making financial decisions has contributed to increasing levels of personal debt,” said Fran Targett, director of the principality’s bureaux, in the Western Mail.

Criticism of people’s day-to-day budgeting comes as the government decides to take action to improve financial knowledge by making schools teach basic finance.

Britons are facing massive debt as levels reach £1.2 trillion, but the survey revealed that around one in seven people had no money saved and a similar proportion avoided opening their bills.

Rather than avoid debt problems, experts recommend that people consult professionals about management, especially as advice is often free.