17m people usually go overdrawn every month

Some 36 per cent of Britons who have a current account are usually overdrawn at some stage of the month.

Research by thinkmoney has discovered the dire financial straits some people are in as they fail to stick to a budget. For example, 11.1 per cent of individuals with an overdraft are already in the red on the first day of the month. 

Towards the end of the four-week period, 42 per cent of consumers put off any non-essential spending as they start to run low on money, while 24 per cent avoid nights out because they cannot afford to part with the cash. 

It seems that many people are splurging after payday while they can, as a big shop (32 per cent), filling up the car (16 per cent) and new clothes (12 per cent) are all high on the agenda.

Ian Williams from thinkmoney said: "It seems that the excitement of being paid can cause people to dash out and spend, only to run low on funds later in the month – with more than a third of us using an overdraft to get by. 

"A good budget could help many people make it through the month without running out of money or borrowing from their overdraft."

If consumers fail to put a plan in place, they may become stressed and will be constantly worried until they get paid again. Instead, they should structure their month in such a way that they have money at all times.

Should an unexpected expense crop up, many individuals will not have enough disposable cash to deal with it and so could be forced to use a credit card. Further problems could then crop up if Britons do not stay on top of their repayment plan. 

This demonstrates just how important it is for people to look after their finances, as doing so will give them one less thing to worry about.

For more advice about managing your finances, visit the ClearDebt blog. 

By Joe White