Majority struggling to pay the bills

Sixty per cent of adults in the North West are struggling to keep up with bills and debt repayments, a major survey of people's finances has suggested.

The Money Advice Service, a government-backed website, asked people a series of questions about their finances. It also followed 72 families over the course of a year to see how they managed their money.

The banking crisis and the subsequent credit crunch have changed the way people view and cope with their financial situation, the survey findings suggest.

Individuals were worried about their ability to make their money last until the next payday, the advice service said.

Stretched finances meant many people were not putting money aside, such as saving for a pension.

In addition, there was no money ready for dealing with emergencies, even though a third of those asked said they had suffered a financial shock in the last three years.

Some 21% said they had experienced a large drop in income, while 42% said they would have to think about how to cover an unexpected bill of £300.