Debt warning as Brits fail to make wages last

People in Britain may be increasing the likelihood of their need for debt management help by failing to stay in control of their money situation.

New research carried out by R3 has found nearly four-in-ten struggle financially to make their wages stretch to the next pay day.

The organisation noted this means 18 million individuals are having trouble making their pay packet last them over a four-week period.

More than a third (33 per cent) of those questioned said credit card payments are resulting in their money worries, while 24 per cent pointed to going out and other non-essentials as the main factors in their problems.

Moreover, 15 per cent of respondents nodded to paying off bank loans and making mortgage repayments as playing a contributory role in their monetary woe.

And from a gender point of view, it appears women are finding it more difficult than their male counterparts to make their salary last them month-to-month.

The investigation revealed 42 per cent of females find it hard to effectively resource their income, compared to 32 per cent of men.

Furthermore, 36 per cent of guys said making credit card payments causes financial stress, while 25 per cent of girls cited non-essentials as the main reason for financial hardship.

President of R3 Steven Law said: “One of the fundamental problems is people’s inability to budget which is seen most strongly amongst young people who have been brought up on a culture of credit and having everything now.”

A recent survey by the Skipton Building Society found 78 per cent of people in Britain are currently feeling negative about their financial position.

Posted by Joe White