Member Article

Country feels post-holiday pinch

Many householders became strapped for cash yesterday due to the Christmas spending spree. Those who overspent at Christmas may be suffering even further because they were paid early in the run up to the holiday.

A study named January 9 “no pay day” because many people have run out of money after the festive spending spree. Some householders will dip into their savings or rely on credit and loans to make ends meet for the rest of the month, according to Norwich Union.

The poll found that 73% of respondents thought they would run out of money before or on January 9. 43% of people surveyed said this month was the most worrying time of year financially, while one in five thought bills would be more than salaries. 35% thought slipping into debt this month was inevitable.

The research found that Britons spent on average £781.86 extra over the festive period on gifts, socialising and sales shopping. Dipping into the overdraft facility will be the most popular way of getting by until payday later in January, the poll found.

Cesarina Holm-Kander, financial expert, says: “To see that so many people will be struggling so very early in January is worrying, especially since the financial environment is so widely reported on. ‘Credit crunch’, the end of cheap credit and increasing bankruptcies are a reality, yet people spend like there’s no consequence.

“I hope this month is the shock that finally gets that message home. Let this January be the last when you have a ‘No Pay Day’ before you have even reached pay day!”

This was posted in Bdaily's Members' News section by Ruth Mitchell .