Brits are stretching their budgets by more than £40bn a year, according to new research – if you are stretching your budget every month it might be time to consider some safe secured finance.

According to GE Home Money Home Lending, 77% of adults have set themselves a monthly spending limit but of these, 60% said they go over their budget every month, with an average over-spend of £154. One in twelve admitted to exceeding their budget by more than £300 per month.

But some people are doing their best to only spend what they can afford – the research found that 29% of people manage to stick to their budget, while 11% spend less than their budget. So it is possible to keep your finances under control but for some it might be harder than others.

Chris Tapp of Moneybasics.co.uk says: “It is heartening that millions of Britons set themselves a monthly budget but the regularity with which they exceed these limits is extremely worrying. Easy access to cheap credit has conditioned many to believe it doesn’t matter if they spend too much as they can always borrow to meet any shortfall. Sadly it is this type of thinking that has trapped thousands in a cycle of misery and debt.”

If you are one of those who can’t keep to the budget, talk to a professional mortgage adviser about using some of your home’s equity to safely and sensibly get your finances under control. The days of easy credit are long gone, but good, well-sourced credit is still a perfectly viable option.

SOURCE: GEMHL, Moneybasics.co.uk, 15/04/10

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