Monthly pay lasting just 17 days
Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank.
This means that the average UK worker spends half the month worrying about money.
The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start feeling the pinch just one week after being paid while more than half are struggling by the final week of the month.
Not surprisingly, given this level of concern, the study found that 5 per cent of people check their bank balance at least once a day, while 40 per cent know how much is in their accounts to the nearest £5.
Twenty-two per cent of those surveyed said they check their bank accounts more than three times a week.
Anthony Warrington, director of current accounts at Halifax, said: “With mobile banking apps and internet banking, it’s much easier to stay on top of spending and account activity whilst on the move.
“It’s encouraging to see people take control of their bank balance.”
The TUC recently warned that workers are taking home £60 billion a year less in real terms than they were 30 years ago.
Workers’ incomes have been eroded by poor earnings growth, an increase in personal debt and a widening pay gap with bosses.
Even though workers have become more productive, the ratio of pay between company chiefs and other workers increased from 47:1 in 2000 to 102:1 in 2011.
PricewaterhouseCoopers’ ‘Precious Plastic’ report revealed that UK families are among the most indebted in the world.
Even though the average UK family reduced its debt by £355 last year, it still owes £7,900 in personal loans, overdrafts and credit cards.