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Brits are underestimating the cost of their household bills by 30 per cent, according to Egg – and thus spending almost £300 a month that they can't really afford.
What's more, essential bills themselves – meaning mortgage or rent, council tax and utilities - take up 46 per cent of the average net income, meaning that they effectively take almost half a year's work to pay off.
The survey also showed that we spend three times more paying off short-term debt, often incurred by such an overspend or financial miscalculation, each month than we do on saving money for our pensions.
Mark Nancarrow, Egg's chief financial officer, said: "It is important that consumers think about their money as being in one of two pots - money which is committed to regular bills, services and costs and money which is leftover for discretionary spending.
"Only by understanding these two separate pots…can we ensure that we stay in control of our money and avoid overspending and unnecessary fees and charges from our banks."
Once expenses have been met, the average household has £714 to spend each month – equating to a nationwide spending fund of £228 billion each year.
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