If you want to reduce your chances of overspending and the running the risk of going into the red, it may be a good idea to know how much money you’ve got to spend.

What on the surface, appears to be a fairly obvious statement is apparently not so obvious for almost 75% of UK adults. According to a recent study, only 25% of people know the exact balance of their bank accounts at any given time. Approximately 2/3rd’s of people can pinpoint their balance to the nearest 10 pounds, with the remainder only able to quote their balance to the nearest 100 pounds.

The study further reveals that surprisingly low amounts of people check their accounts on a daily basis (approx 1 in 10), with a further 50% stating they check their account balance every few days. However, although the figures do seem to be very low, they are apparently better that they were 12 months ago. The market analyst responsible for the findings has stated that people are becoming more aware of their finances, in light of news re bank overcharges and increased cases of identity fraud.

Consumers need to understand the importance of monitoring their finances daily, as guesstimating your financial position is a sure fire way to run into trouble. It is possible that this news could be another contributing factor to the rise in IVA cases and overall consumer debt.