Find out what our customers have to say about our service.Read more
Cost of Pay Day excitement adds up
Tuesday June 18th 2013
Nearly two million people slip into the red on the day they get paid, a new study has found.
Budgeting account provider thinkmoney found that 17m people with a current account (36%) use their overdraft facility and most of them are overdrawn by the 16th of the month.
The study found that on pay day a third of people rush to the supermarket to do a big grocery shop, 16% fill the car up with fuel and 12% splash out on some new clothes. A big night out is often on the cards for 9% of people on pay day.
Because of this pay day rush to spend, many people have to adjust their spending pattern as the month progresses, with many people having to limit spending during the last two weeks before the next pay day.
Non-essential spending is ruled out by 42% during the second half of the month, and 26% survive on the food they already have in the house rather than eating out or ordering a takeaway. Nights out are knocked on the head as pay day approaches once more, and drivers try to save as much fuel as possible by driving as little, and as carefully, as they can.
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.
Copyright Press Association 2013
How would you cope financially if you lost your job, fell seriously ill, or had an accident? Our great value Income Protection Insurance helps you plan for the unexpected and comes with added extras you won't always find with other insurers!