More than four in five (82%) people have seen their living costs such as grocery or energy bills and day-to-day essentials increase in the past few months, a survey has found.
As a result, nearly a quarter (23%) have dipped into savings, a fifth (19%) said they have changed their usual habits and more than a third (36%) have cut back on spending on non-essentials, according to the research from TSB.
A fifth (19%) have increased their debts, by taking out new credit, increasing existing credit, or going into their overdraft, the survey of 5,000 people in December 2021 found.
One in seven (13%) people said they are struggling, according to TSB’s money confidence barometer.
More than eight in 10 (83%) of those who are struggling rent their home.
Mark Curran, customer banking director at TSB, said: “It’s clear that many people are concerned about the impact of bills going up and rising inflation.”
Here are some budgeting tips from TSB:
1. Look through your statements or use the digital tools from your bank to find outgoings such as direct debits and subscription services to give the full picture of how much you are spending.
2. Do not delay in cancelling payments for anything that you no longer need or looking for cheaper alternatives.
3. Make use of online banking if you can to help you keep on top of your finances and avoid unexpected charges.
4. Talk to your bank if you need help.