A quarter 'struggle to pay bills'

Sep 24 2009

One in four Britons are currently struggling to pay all of their essential bills, a survey has revealed.

Around 25% of people claim they can no longer afford all of their essential outgoings, including mortgage repayments and food, according to insurance specialist Bright Grey.

A further 14% of people admitted their finances were so stretched that they would run into problems if their outgoings rose by just £50 a month, while 16% did not think they would be able to cope if they had to find an extra £100.

But 11% of people are more confident, saying they could survive financially regardless of how much their bills rose by, and 12% said it would take an increase of at least £300 a month to tip them over the edge.

The group found that the average person spends £1,378 a month on essentials, including mortgage or rent payments, utility bills and council tax, food and transport costs, with families spending just over £2,000 a month.

Roger Edwards, proposition director at Bright Grey, said: "The report reveals the average Brit is just £155 away from a money meltdown.

"The frightening truth is that most Britons are already struggling to afford their monthly bills - and all it would take is a small increase in bills or drop in income for people to find themselves in trouble."