 Consumers feel the financial heat as the economy slows |
More than one in four Britons say they will struggle to pay their household bills over the next three months. The percentage of people claiming they are short of cash every month rose from 17% to 28% between July and September.
Mortgage repayments and council tax bills were the two biggest burdens, according to a survey from insurer CPP.
The group said that Britons were waking up to their financial commitments as the economy slowed and recent interest rate hikes hit home.
Weaker economy
Last week, official figures showed that the UK economy had slowed.
Gross domestic output (GDP) expanded by just 0.4% in the three months to September.
 | Top money worries Mortgage 29% Council tax 26% Utility bills 14% Credit card 11% Bank overdraft 8% Source: CPP |
The figure represents the weakest pace of growth since the first quarter of last year.
Over the past year, the Bank of England has raised interest rates five times to 4.75%, in a bid to keep a lid on inflation and cool the housing market.
This has put pressure on household budgets, the survey found.
"With the UK economy slowing down, it is even more important that consumers stay in control of their finances," CPP spokeswoman Shirley Woolham said.
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