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Basic spends 'make up 50% of monthly outgoings'

Halifax research has shown essential costs make up about 50 percent of people's monthly outgoings

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28 March 2013

Basic spends 'make up 50% of monthly outgoings'

Plenty of people may be turning to their credit card to tide them over with the latest research showing the cost of basic goods and services account for about half of people's monthly outgoings.

Using data from the Office for National Statistics, Halifax discovered that a rise in the cost of essentials in the last ten years has meant they now make up about 50 percent of people's monthly spend.

Shelter, food, water and heating come to about 25 percent of people's monthly outgoings, the study showed, with the cost of transport, health and personal care pushing this up to half.

As a consequence, people have less disposable cash to pay for the things they like, with the amount spent on recreation and culture falling 13.5 per cent over the decade.

"There is no easy solution, but showing expenditure in its most basic terms like this serves to highlight the importance of budgeting," said Anthony Warrington, director of personal current accounts at Halifax.

"In order to make sure people can pay for the things they need to buy before they look at the things they want to buy." 

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