Brits underestimate monthly bills, report says

Wednesday, December 2nd 2009

Many consumers underestimate how much they spend on their bills every month, according to new figures.

Research from Bright Grey shows that the average Briton believed they spend less than £900 on bills per month - but in fact they shell out almost £1,400.

The company said this may be why some consumers overestimate how long they would be able to survive financially on just their assets if they were to lose their monthly income.

"When it comes to financial planning, most people seem to have the blinkers firmly in place," remarked Roger Edwards, proposition director at Bright Grey.

He added that consumers can save themselves future "heartache" by putting together a realistic plan for their finances now.

Many parents who earn less than £30,000 a year will struggle to pay their bills this winter, a recent study by Save the Children suggested.

Over half of these people will take out high-interest forms of credit to pay for fuel, food and bills over the Christmas period, it said.