One in 10 people in the UK are living beyond their means, regularly spending more than they earn, a survey showed yesterday.

Consumers are relying on a combination of credit cards, overdrafts and loans to plug their spending gap, according to price comparison website uSwitch. com.

Around 11 per cent of people spend more than they have coming in on a monthly basis, while 26 per cent just manage to break even, and a further 53 per cent have less than £100 spare each month.

Among those who are exceeding their income on a regular basis, 48 per cent said they relied on their overdraft to cover their outgoings, while 34 per cent used credit cards to bridge the gap and 19 per cent borrowed money from family and friends.

Around a quarter of people said they dipped into their savings when they overspent, while 10 per cent have increased their mortgage or taken out a loan.

More than half of people do not expect to receive a pay rise this year, and those who do think it will average just 1.9 per cent.

A third of people also expect to be worse off this year than they were last year, despite the UK pulling out of recession.

Ann Robinson, director of consumer policy at uSwitch.com, said: "The economy may be on the mend but millions of consumers are still struggling to make ends meet.

"Short-term debt solutions may be an easy way to fund spending but they can lead to severe debt issues if not managed properly."