One-in-three left short before rent payments
Research by price comparison website Confused found most people have set up direct debits set up to pay rent and other bills within three days of their salary being paid. However, 33% of people have been left short by an unexpected payment coming out of their account.
Around 8% of Brits said they spend more than three-quarters of their salary within a week of being paid. Less than half of those surveyed (44%) said they believe they budget their money well across the month.
A further 17% said that they tried to budget but often failed, with 8% struggling for cash by the end of the month.
However, one-in-six adults (15%) admitted to buying frivolous items after pay day.
When finding themselves short of cash, nearly a third (31%) said they had used a credit card to get through to the end of the month. Additionally over a quarter (27%) have used their savings and a fifth (20%) used their overdrafts to make up any shortfall.
Nerys Lewis, head of credit cards at Confused.com, said: “It’s great news that so many Brits are organised with their finances and plan their direct debits around pay day.
“This is a great way to budget for the month ahead, but with so many of us admitting to relying on credit cards, overdrafts or pay day loans to get to the next pay day, it’s clear many of us have room for improvement.”