Within three weeks of acquiring their monthly pay, 17 per cent of adults in the UK are struggling to pay for day-to-day spending ahead of pay day, acc…
Within three weeks of acquiring their monthly pay, 17 per cent of adults in the UK are struggling to pay for day-to-day spending ahead of pay day, according to research by the Post Office.
Worryingly, the Current Account Footprint Report revealed this is happening on a monthly basis and is not just a one-off occurrence. With the cost of living rising much faster than peoples' wages, individuals cannot cope under the financial pressures, especially when they are trying to raise a family.
The report showed 15 per cent of workers find themselves running out of money on a monthly basis and in order to get by, they rely on credit cards, overdrafts and savings. This happens yearly for over four in ten people (41 per cent).
Furthermore, a quarter of workers admit their financial situation has a negative effect on their health, with just over one in four (27 per cent) stating a lack of money leading up to payday causes them all types of stress, while another quarter claim they have had sleepless nights worrying about how they are going to cover costs in the weeks before their next paycheque.
Geographically, it is Londoners (39 per cent) who feel the most comfortable about relying on other sources of credit at the end of the month, compared to those in the West Midlands (25 per cent) and East Midlands (21 per cent).
What is most concerning is the fact many people are simply burying their head in the sand, with 17 per cent now choosing to not check their current account at some point during the month.
The closer it gets to pay day the more likely individuals are to stop looking at their balance with one in ten workers no longer checking their balance in the third and fourth week from pay day.
Unfortunately, this is leading to people falling into credit card debt and it can be very difficult to climb out of this, especially if you are adding to it each month.
John Willcock, head of financial services at the Post Office, said: "It is a concern that we are becoming ‘payday' Britain, just counting down to the next pay cheque. However, the bigger worry is that so many workers are struggling to balance their income versus their outgoings every month."
By James Francis