Bills and debts are higher than income


struggle to meet billsThe troubled economy has left many of us struggling to keep a tight rein on our personal finances, and it is now thought that around three million British families are in the same boat.

According to Legal & General's Money Mood poll, an estimated 3.3 million households are forking out more cash towards their bills and debt payments than their income flow. This has jumped from around 2.1 million households when similar research was conducted in September 2011.

The findings revealed that parents within this group fall short by an average of nearly £74 each month. This is an improvement on February's results, when bill payers suffered an estimated £96 shortfall per month.

But the total monthly deficit for bill payers throughout the country has increased to around £244 million every month because more and more families' finances are in the red.

"Around 3.3 million households in the UK say they are spending more than their income on paying bills and debts," said Mark Gregory, Legal & General executive director for savings.

"That's more than a million higher than back in September last year, just as the first quarter of the double-dip recession was about to kick in."

Check out this guide to find out more about budgeting and balancing your household's books.