Debt has become a way of life in the UK claims a new cahoot report, warning that 59 per cent of people spend more than they earn.
Eight per cent spend more than their income every month, while 51 per cent do so occasionally, using homeowner loan deals and credit cards to bridge the gap.
Almost half (49 per cent) of all adults in the UK borrow the difference on a credit card, while 48 per cent use an overdraft.
“Many people borrow money from one source or another, which isn’t necessarily a problem as long as they have the means to pay it back,” said John Goddard of Cahoot.
“Much of this overspending is used to finance a lifestyle, so when it comes to the crunch, people can cut back if necessary.
“In order to help people manage their spending, cahoot offers all its current account customers free text alerts when they have reached their overdraft limit or when a debit over a pre-agreed amount has been made,” he added.
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