Debt problems may increase as just 17 days are worry free

Many Britons are in danger of slipping into debt through using an overdraft every month, with cash becoming tight at increasingly early stages.

This was the finding of a survey by Halifax, which has revealed one in ten people find money starts getting tight within a week of them receiving their salary.

And the average person begins to get concerned after 17 days, meaning two weeks of worry and possible debt lie ahead before the next salary is paid into their bank.

So concerned are some consumers that they keep checking their bank account to keep a close eye on the balance, with 38 per cent stating they know how much money is in their account to the nearest £5 and 23 per cent to the nearest £10.

One-in-five consumers check their balance at least once a day and a similar number do so more than three times a week.

Commenting on the situation, director of current accounts at Halifax Anthony Warrington said: "With mobile banking apps and internet banking, it's much easier to stay on top of spending and account activity whilst on the move.

"It's encouraging to see people take control of their bank balance, as it means that they will have a better awareness of their own financial needs."

However, little of this may actually help deal with debt itself, as that will require not just monitoring balances action to trim expenditure, or bring monthly payments down.

Debt consolidation such as switching to a credit card with a lower rate, or taking on a loan that pays off a borrowing from multiple sources with a lower overall monthly payment and less interest is one way people can effectively reduce the burden.

Women are one group that has run up too much personal debt in recent years, due to seeking "financial independence" from husbands, director of Women In Debt Georgina Earle stated this week.

By James Francis