uSwitch: Britons not living within their means

Date: 18th March 2010

Millions of Britons are struggling to cut back on their spending in order to live within their means, new research has suggested.

A recently-published report from consumer advice service uSwitch.com revealed that 5.4 million adults are spending more than they earn.

The figure has increased from 4.8 million over the last 12 months.

According to the study, 13 million Britons just break even each month and many use overdrafts and credit cards to "plug the gap" between their income and outgoings.

Ann Robinson, the website's director of consumer policy, said: "Consumers are working hard to stay afloat but it's a struggle. Wages are not keeping up with living expenses.

"Short-term debt solutions may be an easy way to fund spending but they can lead to severe debt issues if not managed properly. Rather than continuing to plug the hole by borrowing, consumers need to work harder to strip down their essential bills to the bare minimum."

uSwitch also claimed rising living costs have contributed to 15 million Britons being worse off than they were last year.