Consumer group Which? has revealed that 4 in 10 people are choosing to spend less money on food as their financial budgets are squeezed.
Which? found that one household in every ten in the UK owes more than £20,000, with the average debt being around £5,000. It's one of the reasons why people are being forced to cut back on essential items like food.
The Which? survey also revealed people are choosing to remain in the UK instead of going overseas. Six out of ten people are reducing the amount of money they are spending on holidays because they cannot afford it. While people refuse to go on holiday because of the credit crunch they are maintaining their subscriptions to mobile phones, satellite TV and broadband.
As the UK enters a double dip recessions it's thought that this current standard of living has not been felt since the 1920's.
Payday Loans to Survive
The payday loan epidemic supports this problem, as people struggle to survive financially they are turning to payday loans to live day to day. The problem only arises when it becomes impossible to repay the payday loan.
Failing to repay a payday loan on time can lead to increased costs and charges, creating an even greater financial hole.
Food before Debt
We always say at Debt Support Trust you should pay your priority expenditure before you repay your debt. Priority expenditure is not Sky TV, but it does include ensuring you have a roof over your head, council tax, gas and/ or electricity to heat & power your home and food to live.
After you have paid your priority expenditure you can then determine how much money you have left to pay towards your unsecured debt.
Help with Budgeting
If you need help to budget your finances and have debt problems then you can telephone Debt Support Trust on 0800 085 0226. Our friendly advice team are on hand to support you with your money worries and guide you towards being debt free.