- Wednesday, 3 March 2010Debt management may be needed by the increasing number of people who are spending more than they take home in pay every month.
According to new research from uSwitch, some 5.4 million people are spending more than they earn, while around 13 million are just breaking even at the end of every month.
Some 48 per cent of those who spend above their earnings are relying on overdrafts and 34 per cent are said to be using credit cards.
This is being compounded by the fact that the cost of living is rising at nearly double the rate of salaries, and over 16 million people do not expect to get a pay rise this year, states the report.
Commenting on the figures, uSwitch director of consumer policy Ann Robinson said: "With the pay crunch continuing to bite, consumers need to start paying serious attention to their spending habits.
"Consumers have little scope for reducing their own budget deficits unless they work harder to strip down their essential bills to the bare minimum, rather than continue to plug the hole by borrowing."
Separate research from moneysupermarket.com reveals that five million adults live on their overdraft, and a further 12 per cent are finding themselves in the red five times or more a year.
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