allaboutwomen

In recent months, most of us have been cutting back on luxuries in order to keep our heads above the financial water. However, new research shows that we're now beginning to dodge essential expenses too, in a desperate effort to make ends meet.

It seems that for some people, that's still not enough to make the cash in our wallets last until payday. In fact, a worrying one in three of us is sinking ever-deeper into debt...

The new figures - from Co-operative Insurance and homeless charity Shelter - reveal just how desperate the situation is becoming. Some 28% of us are now spending more money each month than we have coming in. And with the cost of basic outgoings such as rent, mortgage payments and energy bills, UK adults face an average shortfall of £165 every month.

In the survey, a whopping three-quarters of people aged between 25 and 34 admitted to having money worries. This might explain why the younger generation has become meaner than ever.

Recent research from Shelter also showed that over two million people are now turning to their credit cards to pay their rent or mortgage - a desperate act that's never going to end well. And in their efforts to cut back, Brits are now beginning to make false economies which could have disastrous financial consequences.

Cutting corners
The latest study revealed that 22% of the population doesn't think having home contents insurance is important. However, nearly 80% of those questioned said they wouldn't be able to afford to replace expensive items without it. Around 8% even said they had deliberately undervalued the contents of their home, to keep insurance premiums down.

Having a decent home insurance policy is really important. In a worst case scenario - for example if your home is destroyed by fire - that relatively small spend could make the difference between being able to replace everything, and being completely destitute.