A survey by the online bank found the average Brit thinks it costs 30 per cent less to pay their bills than it actually does.

This means that householders think they have an extra £300 a month to splash out on luxuries when it should in fact be used for bills, says egg.

“In order to stay in control of money and know how much is available to spend each month, it is crucial that consumers understand the dynamic between their regular commitments and the money that is leftover for spending,” said Mark Nancarrow, chief financial officer at egg.

Research by egg found the average household spends around £888 a month on household bills, with mortgages and rent accounting for a £611 chunk.

The online bank also found more consumers are relying on direct debit to pay for their bills, with 50 per cent more consumers now preferring this method.

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