A significant number of people in the UK tend to run out of money several days before payday, forcing some to dip into their savings accounts, a new survey has found.
Research conducted by Abbey Banking revealed that 64 per cent of people need to make sacrifices in the week before they get paid, with 43 per cent choosing not to go out and 17 per cent no longer buying new clothes .
According to the firm, 31 per cent of people who run out of funds ahead of their next pay day rely on their overdraft, while 25 per cent choose to make use of their savings and 25 per cent fund purchases using a credit card .
Steve Shore, head of banking at Abbey, said: "A staggeringly high number of people regularly fail to budget effectively each month and end up running out of cash before their next pay cheque."
With the festive period approaching, it is "especially important" that people follow a budget, he added.
Birmingham Midshires recently stated that during the three months to September this year, people "raided" their savings accounts by taking out an average of £400 each.
Brits running out of money before pay day
Brits running out of money before pay day
Fri, 23 Nov 2007
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