ONE in four adults in Yorkshire ran a ‘deficit budget’ in the past month, spending more in the past month than they received in income, according to new research from the insolvency trade body, R3.

On average, 24 per cent of Yorkshire residents spent more than they received earned in income last month. However, this remain lower than the British average of 28 percent.

In Yorkshire, 15 per cent of people spent up to £100 more than they received in income.

Research by the market research company, ComRes, also found that nearly a fifth, 18 per cent, of people in Yorkshire, said they do not have any savings at all at the moment, showing that levels of financial resilience are low for many people.

Eleanor Temple, chair of R3 in Yorkshire and barrister at Kings Chambers in Leeds, said: “This is a worrying snapshot of Yorkshire adults’ personal finances.

“For some people, a month of deficit won’t be an issue, as it may be a one-off, and they may be able to cover the overhang through using savings, or borrowing. However, for others, these options will be less readily available, leading to potential problems ahead if the deficit persists.

“With our research finding that a sizeable minority of Yorkshire adults don’t have any level of savings at all at the moment, it’s worth sounding the alarm about people’s ability – or otherwise – to cope with unexpected hits to their finances. Debt issues can suddenly spiral due to changes in circumstances, and overspending each month does not leave any room for saving for a significant proportion of people.

“For some, a monthly overspend is a more regular occurrence, and this group should seek advice on personal finances as soon as possible: Even a relatively small amount spent over budget in a month can add up to a much larger problem over the course of a year.”

Mrs Temple added: “Whether the overspending is funded through using existing savings or through formal or informal loans, it is a sign that all is not well, despite record levels of employment. A single month of a deficit budget isn’t necessarily a cause for panic, but if they’re happening with regularity or increasing in frequency, talking to a qualified and professional debt expert is a must. Taking no action will only see problems snowball.”