Britons 'overspend by £41bn a year'
Wednesday, 14 April 2010 09:55
By myfinances.co.uk staff
Over three-quarters of Britons have taken a step towards better money management by setting themselves a budget, but consumers are still overspending to the tune of £41.8 billion a year, a new report has claimed.
The study by GE Money Home Lending on behalf of Moneybasics.co.uk found that 77% of adults have set themselves a monthly spending limit.
Of these, 60% admitted to going over budget every month, with the average person spending £154 more than they had intended.
One in 12 budget-busters admitted to overspending by more than £300 a month.
However, 29% managed to stick to their expenditure limit, while 11% actually managed to stay under budget.
"It is heartening that millions of Britons set themselves a monthly budget but the regularity with which they exceed these limits is extremely worrying," said Chris Tapp of Moneybasics.co.uk.
According to a recent poll by Santander, 84% of women and 77% of men have cut back on their spending in the wake of the recession.
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