Brits spend more than they earn
(22 January 2008)

Approximately five million Brits are spending more than they earn, it has emerged.

Research conducted by uSwitch has revealed that a further nine million adults just break even at the end of every month.

The study also showed that the average individual spends £865 a month on "non essential" items- leaving them with £157 at the end of the month after paying debts and for essential items.

Ann Robinson, director of Consumer Policy at uSwitch.com, said: "Britain is suffering from a bad case of affluenza. We are caught in the grip of a spiral of conspicuous consumption where it's no longer enough to keep up with the Joneses, but instead we want to live like our favourite celebrities."

Ms Robinson continued to say that as the credit crunch 'begins to bite' consumers need to start paying serious attention to heir spending habits.

uSwitch's research also showed that the luxury items people most commonly spend their money on include holidays, recreation and culture and alcohol and tobacco.

Meanwhile, recent research from the Building Societies Association has shown that a record £16.1 billion was deposited in building societies last year.

This was an increase of £7.8 billion from 2006.