The average Briton is on the cusp of having a “money meltdown”, findings from a new study have indicated, with as many as 12 million finding it hard to pay off their monthly bills.
Commissioned by Bright Grey, the Reality Gap Report revealed that 39 per cent of people would have difficulties steering clear of sliding into debt if utility costs increased by up to £50 per month.
Proposition director at Bright Grey Roger Edwards noted that “all it would take is a small increase in bills or drop in income for people to find themselves in trouble”.
The survey also highlighted the fact that 68 per cent of the average monthly income is spent on essentials, following price hikes in fuel – which has gone up by 325 per cent since 2003 – and shopping, which has risen by 27 per cent year-on-year.
Earlier this month, Michael Coogan of the Council of Mortgage Lenders advised debtors to contact their lenders as soon as possible should payment problems arise, in order to prevent incurring further penalties.
By Sarah Adie