According to Visa UK, £83 billion “disappears” annually from British wallets and purses, working out at £1,700 per person, enough to cover utility bills for a year.
“This research reveals how difficult it is to keep track of your spending when using cash,” warned Greg Twitcher, Visa UK vice president.
Research follows claims that average personal debt levels have reached £42,000 per person.
With £1 in every £8 being unaccounted for, much of this debt could be due to poor control of finances.
While socialising and groceries account for the largest “disappearance”, with such a great proportion “lost” many Britons could help manage their debts by simply keeping better track of their cash.