Families are close to debt as they struggle with essential monthly bills

Families are teetering on the edge of debt as they struggle to cope with monthly bills, according to recent research.

12 million Brits are struggling with essential monthly bills and would run into debt problems if their outgoings increase by just £50 per month.

This figure rises to over 50% of the population if the cost of essentials increased by £100 per month.

Essential bills such as food, housing costs, transport and energy bills account for 68% of household income.  The average family spends £2001 on these essential costs of living, according to the research.

The problem for many families is that their finances are so stretched that only £50 of additional monthly expenditure could create debt problems.

With mortgage rates at low levels, some families would find even small increases in their mortgage costs difficult to cope with.  Increased winter fuel bills and rising food costs could also present difficulties for families struggling to get by.

As Roger Edwards, proposition director at Bright Grey, who commissioned this research, commented: “The report reveals the average Brit is just £155 away from a money meltdown.”

“The frightening truth is that many Brits are already struggling to afford their monthly bills – and all it would take is a small increase in bills or drop in income for people to find themselves in trouble.”

Debt advice is available for people who are getting concerned about their debt problems.