As a result of not managing their finances carefully, the survey found that 13% of people had built up debt by only paying the minimum amount off their credit card each month while 12% had paid bank charges as a result of not pre-arranging an overdraft facility.
More worryingly, one in ten admitted to spending more than they earn each month and 10% say that they can only manage by using their credit card to buy essentials such as food and fuel. And 6% are ignoring bills because they haven’t got the money to pay for them.
A further 9% of those surveyed said that they owe money to friends and family which they can’t afford to repay.
Claire Peate, customer insights manager at Gocompare.com, commented: “From our survey it’s clear that many people are feeling overwhelmed by the state of their finances and scared by their poor money management. While it’s normal behaviour to try to avoid the things we fear, ignoring money issues will only make any problems worse.”
