Britons Looking to Save, Survey Finds

Increasing numbers of householders are struggling to cover their monthly bills and debts with their income, Legal & General's new MoneyMood survey reveals.

According to the insurer, which releases the debt data each month, eight percent more people felt that they were "living beyond their means" last month than they did in May. This means that around 5.3 million Britons are now feeling financially stretched in this way.

However, Legal & General's survey also found more positive results. From May to June, the number of people whose outgoings in bills and debts exceeded their earnings decreased, from 59 percent to 57 percent. A still sharper drop in this figure was registered for married couples, with a decline from 62 to 53 percent registered.

Also encouraging was the finding that around twice the number of Britons feel inclined to save more than they spend, than feel that they will spend more than they save. It is likely that this conservative mood has come about due to the financial pressures being exerted by the credit crunch and rising prices.

Jonathan Latham, director of wealth customer marketing at the insurer, commented: "It is encouraging that MoneyMood shows the overall trend reflects a mood to save rather than spend. However, for some, this sentiment has not been enough to keep the wolf from the door. As inflation takes its toll, the need for investing becomes even greater as digging into reserves looks inevitable for an increasing number, with nearly 5.3 million people now being forced to spend more than they earn.

"The harsh reality of today means the end of the ‘spend now pay later' culture."