More than 16m Brits to go without a regular budget in 2013

Over 16 million Britons are not going to bother with a household budget in the new year. Figures released yesterday (December 26th) by the Money Advice Service point to the fact that many consumers are failing to look after their finances in an appropriate manner.

When asked whether they would put a plan in place to cover the costs of rent, mortgage, travel, food and clothing, 33 per cent said they did not intend to.

Some 19 per cent said they do not need to have a budget as they can rely on credit if needs be, while 17 per cent think it is waste of time. On top of this, 16 per cent of respondents enjoy living in the moment and being carefree with their money, while 32 per cent have disposable income at the end of the month.

Consumers should make sure they have a plan in place, as they could end up in debt trouble if they fail to do so. Indeed, the new year presents people with the ideal opportunity for them to get their finances in order.

Jane Symonds, head of service delivery at the Money Advice Service, said: 'In these tough economic times, many people don't have much money left over after the bills have been paid so it's really worrying how many households intend to live off overdrafts and credit cards.

"Keeping track of your money will not only help you cope with the unexpected, but also bring peace of mind."

Other findings from the survey include that 52 per cent of those who have a budget in place feel better about life as a result of it, while 30 per cent of people would feel out of control if they did not have one.

Some 58 per cent of men said they think it is easy to stick to a budget, with this figure falling to 56 per cent when talking about their female counterparts.

By James Francis