Brits regularly spend more than they earn

For the last two years, Brits have been spending more than what they have earned, according to data. Experts now believe a debt crisis could be looming.

The data, which was released by the Office of National Statistics, show that this stint of borrowing is the biggest and longest since records began in the late 1980s. Data from the same report also highlights the desperate lack of savings people have.

People putting away money in the form of savings has dropped to lows never experienced before, and the household saving ratio is currently one of the very lowest in the whole of Europe. Many experts believe that because people are living so perilously close to the bone, and because of the volatile and uncertain situation that the country is in with regards Brexit, that families up and down the country could go bust at any moment.

“There is clearly no financial security for the majority of Brits”, a financial expert told us. Just one wrong move, or a tiny blip to the economy could send millions of families bust. That is how dire the current financial situation is for people in the UK at the moment. To have one of the lowest savings ratios in Europe is alarming and isn’t good for economic or financial confidence in the long term. “

“If the economic tide turns for the worst, people won’t have the resilience to get through. That could be disastrous for the country.”

People need to start to get on top of their finances as a matter of urgency and really build up some kind of savings fund. Whilst we appreciate that sparing money when there are bills to pay maybe difficult, it is surely better than entering into a debt spiral. People need to get a grip on their spending, and start the savings process as a matter of urgency.