36% of Brits say an increase in monthly outgoings of £50 or less would push them to financial breaking point.
Of these, one in five say they are now sitting on the brink, finding it impossible to meet their monthly bills and costs.
The figures are taken from the MoneySupermarket.com Affordability Tipping Point research, which measures the ‘pounds and pence’ point at which household outgoings rise to overtake income. The report also reveals that Brits have, on average, seen their household outgoings rise by £56 a week over the last six months, suggesting that this £50 monthly ‘tipping point’ limit could literally be just around the corner for millions as the cost of living continues to rise.
44% of adults have increased their use of credit over the last year to help them make it through each month. 24% say they have relied more on credit cards and 17% have turned to authorised overdrafts to help them meet regular household outgoings, while 13% have relied on hand outs from friends and family.
Clare Francis, personal finance spokesperson at MoneySupermarket.com, said: “The fact a rise in outgoings of £50 or less would tip a third of Brits to ‘financial breaking point’ speaks volumes about how difficult people are finding things at the moment.
“We have just learnt that millions of SSE customers, will see the price they pay for gas and electricity rise by a wallet-busting £116 a year,while thousands of borrowers paying Santander’s standard variable mortgage rate could see their payments increase by £42.54 a month from October. This coupled with the fact that many already admit to using credit more than they normally would to get them through each month, paints a worrying picture.”
