According to research by insolvency trade body R3, more than four in ten adults in Britain struggle each month to make it to ‘payday’ (11% on a regular basis and 31% occasionally) and the average day this struggle begins is the 20th day after payday.
The main causes for this struggle have been identified as:
Credit card payments – cited by 35% of those who often or sometimes struggle to make it to ‘payday’
Spending on going out or non-essentials – 25% of those who struggle
Paying off bank loans, ‘big ticket’ purchases, making mortgage repayments – between 15-17% of those who struggle
R3’s President, Steven Law, said:
“Our addiction to credit cards is still out of control, despite the recession and a ‘tightening up’ of lending criteria. There needs to be a cultural shift in consumer attitude to debt. For too long we have got used to the idea that this is money we are entitled to. Using a credit card is just delaying the inevitable day of payback – the sooner this is tackled and professional advice is sought, the smaller the final bill will be for individuals.”
Source: R3 Press Release