Customers overspending despite large bills
(05 December 2005)

Households underestimate their spending on bills by around 30 per cent, new research has indicated.

Egg's survey shows that people typically believe that they have £300 more to spend each month than they actually do, and are startled when an average total bill of £888 for mortgage, rent, utilities and council tax comes through the door.

Furthermore, it seems to take half a year to pay off such bills on an average salary, according to the 1,015 people surveyed.

These figures show that debt and overspending can pile up with startling rapidity over a short amount of time. If you've exceeded your budget, take out a payday loan to put things right while you work towards a more realistic spending plan.

A cash advance of between £80 and £1000, repayable on your payday, could find its way into your account within 24 hours – covering the typical overspend for this month and giving you time to make matters better without resorting to longer-term credit.

Mark Nancarrow, chief financial officer for Egg, gave an example of the kind of spending plan that could be made to avert future problems.

He said: "In order to budget effectively it is important that consumers think about their money as being in one of two pots - money which is committed to regular bills, services and costs and money which is leftover for discretionary spending.

"Only by understanding these two separate pots - how they operate and what they cost - can we ensure that we stay in control of our money and avoid overspending and unnecessary fees and charges from our banks."

Arrest any escalating overexpenditure – amounting to £94 billion nationally each year – quickly by taking out a short term loan and wising up to your bills in the process.



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