Brits £50 away from 'bad debt'

Four in ten Brits could risk a bad credit rating if they were asked to pay an extra £50 in bills each month, research has suggested.

Essential bills now account for more than two-thirds (68 per cent) of the average household's income, according to a survey by Bright Grey.

The financial services firm found that a quarter of Brits are already struggling with bills, while only one in ten believe that they could cope with any increase in their monthly outgoings.

Roger Edwards, proposition director at Bright Grey, explained that most Brits are only £155 away from "money meltdown".

He said: "The frightening truth is that many Brits are already struggling to afford their monthly bills - and all it would take is a small increase in bills or drop in income for people to find themselves in trouble."

Confused.com's head of utilities Gareth Kloet recently suggested that Brits shop around for the cheapest bills in order to reduce their monthly outgoings.