Around half of households in the UK (46 per cent) have run out of money before the end of the month over the last year, according to new research from Halifax.

The survey of 2,016 individuals aged 16-75 found almost one in ten (nine per cent) ran out of money every month in 2012.

However, there is a tendency for people to bury their head in the sand over the issue, with three quarters of households (74 per cent) in the same study saying they are coping well financially.

Most people think that money is at its tightest for those in their 20s, as student fees, finding a job and moving out of home often leave them with more expense compared to income, generating large amounts of debt.

Some 50 per cent of this group said they run out money before the end of the month at least once in the last year, while 11 per cent said they were without finances by the end of every month.

However, this figure actually increases among people in their 30s and 40s, with 58 per cent and 57 per cent respectively admitting they run out of money before the end of the month at least once in the last year. Of those people, 10 per cent in their 30s and 11 per cent of those in their 40s said they did so every month.

Once people get into their 50s the problem lessens with 20 per cent of people saying they run out of money at least once, with just eight per cent claiming it happened every month.

Anthony Warrington, director of personal current accounts at Halifax, said: "It is perhaps a symptom of the current situation that more people in their 30s and 40s are finding they run out of money before the end of the month.

"There is no easy solution but keeping a close eye on your finances can help with budgeting, and by monitoring your expected outgoings you can see how much you have left over the month."

Almost half of the participants (49 per cent) said they currently feel worse off than they were a year ago. Only 13 per cent of households said they are now better off financially compared to the same time the previous year.

It was those in their 40s and 50s who were found to be feeling the pinch the most, where 54 per cent and 60 per cent respectively said they are now worse off. In comparison just 40 per cent of those in their 20s, and 41 per cent of those in their 30s claimed they are faring poorer financially.

"Ignoring money worries at any age will not make them go away, and is more likely to result in financial problems down the line," Mr Warrington added.

It is important for those who are struggling with their finances to address it sooner rather than later before they end up in too much personal debt. If an individual is spending too much money on debt repayments they may potentially benefit from a debt consolidation loan, which can reduce monthly outgoings.

By Joe White

The one pound coin is coming up to its 30th anniversary and although cash is still king in the UK, an increasing number of people are starting to use other payment options to pay for things, according to new research from Go Compare.

According to the survey, 34 per cent of people try to pay for things using cash whenever possible and 48 per cent said they did not like being without physical money. This figure rises to 57 per cent for people aged 55 and over.

Cash is the main payment choice for anything priced under £5, with 92 per cent saying they use change to buy things such as newspapers and magazines.

However, this figure soon drops as the price goes up, as only 52 per cent of people use cash when purchasing anything between £5 and £20.

Debit and card usage is growing in the UK and on purchases between £5 and £20 a third of individuals use one, while 13 per cent would use their credit card.

Once the price goes over £20, plastic payment methods dominate. For items priced between £20 and £30, debit card becomes the most popular method of payment with more than half of people (51 per cent) using one.

Credit card payments are the third most popular choice in this price range, however once the cost goes over £30, they leapfrog cash into second.

Paying by plastic is an easy method, but it can sometimes make managing money more difficult. With cash, people can see how much money they have and how much they are spending. However, with debit and credit cards, people need to check accounts in order to assess their finances.

People can often find themselves in credit card debt by using their card to buy things as it is difficult to see how much is leaving the account after a few purchases. It's important for people to check their accounts regularly in order to keep on top of their finances.

By Amy White

The average disposable income per head in the UK fell from £3,780 to £3,767 in the last three months of 2012, according to analysis by the Office for National Statistics.

On top of this expenditure rose by £4 to £3,608 which is squeezing people's finances to breaking point.

Most of the increases in costs have come from utility bills, with many individuals struggling to make payments for the energy they consume.

Including all services provided by the government – such as education – and benefits received, households were still £17 worse off in the fourth quarter.

The biggest cause of the squeeze is the rising rate of inflation which has held steady at 2.8 per cent in March 2013 but is expected to reach and exceed three per cent in the coming months.

Inflation remains twice the level of the average wage and is slowly chipping away at households' disposable income.

A spokesperson for the Treasury defended the rate of inflation, saying it is now almost half its peak of 5.2 per cent.

"The government has taken continued action to help households with the cost of living, including increasing the tax-free personal allowance and freezing fuel duty for nearly three and a half years."

However, more people in the UK are struggling to manage their finances and this lowering of disposable income means less money will be available for repayments. For this reason many individuals are opting for a debt solution such as a consolidation loan to potentially free up more funds.

Fortunately for households, the rise in prices during March was largely in discretionary purchases like entertainment media and electronics, while the cost of essentials like petrol rose more slowly.

In 2012 as a whole, the average disposable income, adjusted for inflation, increased by £176 to reach £15,001, still much lower than it was in 2007.

With the cost of living increasing, the chances of people increasing their personal debt are also rising. It's important for individuals to assess their finances to make sure expenditure does not exceed their income.

By Joe White

One in six people in the UK (18 per cent) missed a payment for at least one bill over the last 12 months, according to new research from Money Supermarket.

This is the equivalent of around nine million people struggling to meet payments.

By not paying bills, individuals are putting their financial future at risk as their credit rating can become damaged as a result.

Of all the missed payments, credit cards came out on top, with many struggling to pay for items purchased using plastic.

Worryingly, six per cent of respondents – the equivalent of three million people – missed a credit card bill payment in the last year.

Council tax was another payment many individuals missed, with four per cent failing to pay their bill. Mobile phones and electricity bills were also high on the list, both of which accounting for three per cent each.

Rent payments were also tricky, with two per cent claiming they had failed to give enough money to their landlord at least once in the last 12 months.

With council tax and housing costs on the increase, the situation could be made worse, especially for people who are in debt and on low incomes.

A fifth of respondents (22 per cent) worry about the effects of missing a payment on their credit rating. Many individuals have seen their rating deteriorate after being unable to pay for things such as rent and energy bills.

Those aged 25 to 34 are the most worried about the future of their credit rating (40 per cent), while 30 per cent of 18-24 year olds are also anxious.

A further 16 per cent of individuals have found having a poor credit rating has stopped them from acquiring further forms of borrowing.

Head of banking at Money Supermarket Kevin Mountford said: "With times being so tough for most UK households and spare cash being tight it is easy to see why people may have difficulty in paying bills on time, or in some cases at all."

This research suggests many people in the UK are lumbered with credit card debt as they attempt to find money to pay for everyday expenses.

By Amy White