Each UK household spent on average around £900 more than they received in income last year.
According to data published by the Office for National Statistics (ONS), the shortfall amounted to nearly £25 billion, with the overspend mostly paid for with borrowed money, although savings were also eaten into.
The report, titled “Making ends meet: are households living beyond their means?”, shows that UK households have seen their outgoings surpass their income for the first time in nearly 30 years, as finances are pushed into deficit for the first time since the credit boom of the 1980s.
Anti-poverty charities have warned that low income households were the worst affected. The ONS figures showed the poorest 10 per cent of households spent two and a half times their disposable income, on average, while the richest 10 per cent spent less than half of their available income.
If you are struggling with debt, or know someone who is, our experts at our partner business BM Advisory can help. Whatever your situation, the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get you back on the right track. Your initial consultation is free of charge, and you can rest assured that it will be in total confidence.
To find out more or to discuss your specific circumstances, please contact Andy Pear or Mike Solomons.