Many Brits Struggling With Debt As Outgoings Exceed Incomings

With many Brits having to spend more each month than their money incoming, debt is a big issue and some are trying to stay afloat by cutting out essential items, such as home insurance, to save money.

Research by The Co-operative Insurance and housing and homelessness charity Shelter shows that around 30% of Brits are struggling as their outgoings exceed their incomings.

The cost of rent, mortgage payments, living costs and fuel bills means that UK adults face an average shortfall of £165 a month.

Many are concerned about their cash flow and are starting to cut out essential items, such as home insurance, just to try and stay afloat.

Over a fifth of the population don’t think having home contents insurance is important, even though nearly 80% of people say they’d be unable to afford to replace expensive items without it.

Lee Mooney, Head of Home Insurance at The Co-operative Insurance, said: “Although times are tight and the vast majority of people don’t have spare cash, it’s important people prioritise what they need above what they want in the year ahead.

It’s worrying to see that such a high proportion of people don’t think having home insurance is important, as without it they could be left open to serious risk and further unaffordable expenditure in the long run.”

Recent research from Shelter showed that over two million people are now turning to their credit cards to pay their rent or mortgage, showing the desperate measures people are being forced to take because their incomes cannot keep up with the increasing cost of living.

The Co-operative Insurance is raising money for Shelter’s work to support people needing debt and housing advice. This winter, it has donated £5 to Shelter for every new Co-operative Home Insurance policy, raising £250,000.