More than a third of families barely meet their monthly outgoings, while over four in 10 do not feel positive about their own finances.
One in 10 stated that they do not even have enough money to meet current outgoings.
It was recently reported that GDP had grown by 0.7% in the three months to December 2013, while the numbers of people out of work fell by 180,000 in the 12 months to December 2013.
Average house prices also increased by over £12,500 in the 12 months to January 2014, giving people more equity in their homes.
Simon Kenyon, Lloyds Bank’s director of everyday banking, said: “Family purse strings have been under strain for some time and improvements in the wider economy have not yet taken the pressure off household finances.
“However, there are signs of change as the economy recovers. Families are planning to save more and expect higher disposable income over the coming months.”
Nearly a quarter expect to have more disposable income in the next six months.
In January 2014 nearly one in five families confirmed they are still spending all of their monthly income on household bills, while 42% use around three quarters to cover living costs.
Nearly seven in 10 families in the North West are more likely to spend at least three quarters of their monthly income on household bills, while just over half from London spend the same levels per month.
Families in Greater London and Scotland are most comfortable with their level of savings, with 55% and 59% saying they have enough to cover any unexpected outgoings or a change in circumstances.
Debt wise, over half of the population said that there has been no change in their ability to pay off debt in the last 12 months, although 28% said that it has become more difficult.