When it comes to money, making an occasional mistake or rash decision can be easily done. Financial errors are common and most people will make at least one, at some point in their lives. The trick is to learn from your misjudgement in order to ensure that you don’t get caught out again.

However, one of the biggest, repeated “mistakes” made by UK debtors is causing more people to struggle financially than any other, it is commonly referred to as being “financially presumptive”.

What does financially presumptive mean?

In essence, the term refers to people who spend money before they actually have it. A good example would be an individual who purchases a product, with the intention of covering the debt by using either a bonus payment or working overtime. If for whatever reason they are unable to attain the additional funds (overtime is cancelled, or a bonus is withdrawn) they are then unable to cover the cost of the purchase and are subsequently left indebted.

How many people are affected?

Recent studies suggest that some 3 ½ million people are affected financially as a result of spending money they do not have. Approximately 20% of UK debtors can be classed in this way, with the average debt equating to around £2,000.

The solution?

The best solution for the problem is to just use common sense. It is never wise to run up debts, in the hope of clearing them with prospective funds. It is important to plan for any eventualities concerning your finances (bad or good), in order to avoid future complications. In short, you should never live beyond your means and you should never rely on credit or “hope” to take care of your debts.