Latest Debt News
Nearly 80% budget to avoid debt
01/09/2008 17:03:00
Of those UK citizens asked, 78 per cent say they budget to avoid entering debt, with one in ten reviewing their spending every day, new research shows.
A fifth spend more than they planned at least once every three months and are using their savings or taking on credit card debts to make ends meet, figures commissioned by PayPal suggest.
Nearly three-quarters of those asked do not include all of their expenditure in their budget.
The managing director of PayPal UK Carl Scheible claims the figures reflect a change in household commitments and attributes the trend to rising energy prices, an increased urgency in repaying mortgage debt and higher food prices.
He says: "It's concerning that so many people claim to keep to their budget, yet still rely on credit cards or savings for basic living costs."
Describing a reliance on credit cards as "dangerous territory", he advises households to ensure they take all of their spending into account if they want to avoid falling into debt.
Earlier this month, research by uSwitch showed the average UK household's disposable income had fallen by 15 per cent since 2007
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