A fall in disposable income has resulted in two-thirds of Britons running out of money before payday, Abbey has found.
Research by the lender found that disposable income has fallen 29 per cent over the last two years, meaning 64 per cent of the population has had to cut back on socialising or purchases of items such as clothes and cosmetics in order to make ends meet.
Britons run out of money an average of five days before they get paid, with many now spending three-quarters of their monthly income on essentials such as food and rent.
Director of banking at Abbey Steve Shore noted that many were failing to budget correctly.
“With disposable income down and Christmas almost upon us, planning your finances carefully has never been more important,” he explained.
Those struggling financially may wish to follow his advice and implement a debt management plan.
Personal finance website Fool.co.uk recently suggested that men are likely to spend more than women, as they increasingly pay more than is necessary for products.
By Tom Musk