High monthly bills may necessitate debt management
High monthly bills may necessitate debt management
Tuesday 1st December 2009
That is according to new research by insurance company Bright Grey which shows that people underestimate their monthly outgoings by as much as £964 per month.
While on average Brits believe their monthly outgoings are only £892 per month, average expenditure is actually £1,378.
This means that many people might not be aware that they require debt management.
For those who have underestimated their monthly costs and find that their outgoings become larger than their income, debt consolidation loans could help.
Four out of ten people (43 per cent) said they would dip into their savings to cover bills should they lose their income source.
Roger Edwards of Bright Grey said: "From our report, it's clear that Brits are ill informed when it comes to their finances.
"Not only are they grossly overestimating how long they could survive if they lost their income stream, but even more worrying is that they have no real concept of what they're spending each month, making it very difficult to budget and plan effectively."
One situation where misjudging costs can be catastrophic is when people lose their job and thus have a reduced income. In this situation, debt management plans can allow people to get through their financial difficulties.
Recently, research by Experian claimed to have identified a new psychological problem, "recession strain injury" as many people's mental health suffers following financial loss in the global financial crisis.
News article brought to you by Debt1 – UK debt management specialists
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