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Millions financially struggle days before pay day

Your Money
Written By:
Your Money
Posted:
Updated:
22/08/2013

Five million workers struggle to pay for day-to-day spending ahead of pay day on a monthly basis, according to a new report.

Research by the Post Office’s Current Account Footprint Report, showed the ‘financial tight-rope that many people face’ at the end of the month, with 15% of workers stating that they find themselves running out of money on a monthly basis, and relying on credit cards, overdrafts and savings.

This happens yearly for over four in ten people (41%).

The report found that Londoners (39%) 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%) and East Midlands (21%).

Overall one in four workers admitted that their financial situation has a negative effect on their health. Just over a quarter (27%) said that a lack of money in the lead up to pay day causes them all types of stress, while another quarter say that they have had sleepless nights worrying about how they are going to cover costs in the weeks before pay day.

The report also found that a many Brits are adopting a ‘head in the sand’ attitude; 17% said they stop checking their current account at some point during the month.
And the closer to pay day the more likely people 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.

John Willcock, head of Financial Services at the Post Office, said: “It is a concern that we are becoming ‘pay day’ 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. It is important to check your bank account balance frequently to help you keep in control of your finances.

“Keeping a close eye on transactions and budgeting month-on-month will help manage your money and make you feel more in control of your finances; especially important for those who say their financial situation impacts their health negatively.”