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.

Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years.

The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness.

Women in Debt’s director, Georgina Earle, said: “Females have fought for equality over the last decade or so … We have wanted independence from our spouses and to be able to afford a lifestyle based on this equality.”

However, in their efforts to achieve equality, many women have taken on debts they can’t afford, she warns, and the economic decline in recent years has made the situation worse.

“More females have been able to secure credit based on better jobs [and] higher salaries … However the past few years have seen a huge change and I believe that women will fare the worst,” Ms Earle said.

Labour MP and anti-debt campaigner Stella Creasy recently warned that women are being targeted by payday loan companies.

There has been a rapid increase in the number of payday lenders operating in the UK in recent years as household incomes have been squeezed by the recession.

Payday loan companies offer instant loans of small amounts for a short period, typically around a month.

If the loan is paid off in full at the end of the term there usually isn’t a problem, but rolling over a loan to the following month can quickly cause difficulties because of the extremely high interest rates charged by payday lenders.

Payday loan companies have set up websites targeting women and are advertising on television programmes such as Glee and Friends.

Ms Creasy said women are being taken in by payday lenders.

“Because they are working and have a regular income they are able to pay back at least some of the loan. But if they can’t make a payment they make money for the firm through paying penalties and extensions,” she commented.

At the end of last year accountancy firm RSM Tenon reported that women account for nearly half of all insolvencies, while in the 1980s it was very rare for women to become bankrupt.

The number of people declared insolvent in 2011 in England and Wales declined to 119,850, the lowest level for three years and a fall of 11.3 per cent from a record high in 2010.

There was a sharp decline at the end of 2011, when personal insolvencies fell by 5.6% compared with the last three months of 2010, according to the latest Insolvency Service figures.

The figures include bankruptcies, Individual Voluntary Arrangements (IVA) and Debt Relief Orders (DRO).

Despite the decline, personal insolvencies are still much higher than the average for the past 25 years.

One in 366 people became insolvent in 2011, compared with the 25-year average of one in every 1,600.

Although the figures seem to be on a downward trend, experts warn that the data does not include ‘zombie’ debtors, so the real level of personal debt could be much higher.

Zombie debtors are individual who have entered into informal arrangements with lenders.

While the number of personal bankruptcies fell by 28.3 per cent in the final quarter of 2011 compared with the same period in 2010, the number of IVAs rose by 4.5 per cent and the number of DROs increased by 18.3 per cent.

DROs can only be taken out by people with debts of less than £15,000, and there is the possibility that these individuals could become bankrupt at a later date.

The latest figures from the Bank of England show that consumers made an effort to reduce their debt in the run up to Christmas.

Consumer credit, excluding mortgages, fell by £377m to £207bn in December 2011, representing the biggest monthly drop since records began in 1993.

There was a £400m reduction in overdrafts and personal loans, while credit card lending remained the same.

Economic uncertainty and the threat of another recession is causing consumers to take charge of their finances and cut back on debt according to the latest figures from the Bank of England.

Personal debt, excluding mortgages, fell by £377 million in December, the biggest fall since records began.

Howard Archer an economist at Global Insight said: “Consumer desire to get a tight grip on their finances is clearly the consequence of current heightened concerns over the outlook for the economy and jobs.

“Consumer confidence was at one of the lowest levels on record in December, and while it rose in January, it was still extremely weak compared to long-term norms.”

According to market research firm GfK NOP, consumer confidence recovered slightly this month, with an increase of four points to minus 29, its highest level since June 2011.

The improvement suggests that consumers are becoming more optimistic that the economy and their own finance will improve, even though GDP contracted 0.2 per cent in the final quarter of 2011.

GfK NOP attributes this improvement in consumer confidence to a fall in inflation and a sense of optimism carried over from the Christmas celebrations.

Last week Aviva published its Family Finance Report which suggests that families may be struggling with debt more that other groups.

The report suggests that family debt excluding mortgages has increased by 48 per cent in the last twelve months to £7,944.

Families have taken on another £2,500 in loans and credit card debt to fund the increase in their living costs, which have outstripped the average increase in incomes of around 7 per cent.

Credit cards account for the largest proportion of unsecured personal debt, with families owing an average of £2,314 on their cards.

The rising cost of essentials such as fuel and food has contributed to a 48 per cent increase in the level of personal debt, according to the latest Aviva Family Finances Report.

The average British family now owes around £7,944 in unsecured borrowing, compared with £5,360 a year ago, despite a 7 per cent increase in a typical family’s monthly net income to £2,066 over the past year.

To make matters worse, income has fallen for some groups, with divorced, separated and widowed parents suffering a 22% drop in income between January 2011 and January 2012.

Aviva’s research also highlighted a substantial decline in families’ ability to save, with the number of families saving nothing each month increasing to 42% over the past year.

Many of those families still managing to save have cut down, with the average amount saved by households each month falling from £22 in January 2011 to £21 this year.

Despite pressure on incomes from inflation and unemployment, households’ average spending has ‘remained steady’.

Insurance group LV= has also published a new study today which suggests the cost of raising a child to the age of 21 has increased by 3.3% to £218,000 in the past year.

The cost of education and childcare account for biggest outlay, with education expenses such as uniforms and university tuition fees rising 5.1% in the past year to £71,780, which childcare has increased by 2.7% to £62,099.

Not surprisingly, given that university tuition fees have soared to up to £9,000, young people aged 18 to 21 are the most expensive group, with costs rising by 5 per cent to as much as £17,459 a year.

LV=’s report suggests that many parents are reducing their spending by buying cheaper food and second-hand goods, as well as selling unwanted items to raise cash.

Nearly one third of adults in the UK expect to spend less in 2012 compared with around a fifth in October, according to the Resolution Foundation, an independent research and policy organisation which aims to improve outcomes for people on limited income.

The survey, which was carried out by Ipsos Mori on behalf of the think tank, suggests that people have become more pessimistic about their finances since autumn last year, when the eurozone crisis worsened.

Twenty-three per cent of respondents to the survey said they expect their financial situation to deteriorate over the next 12 months, compared with just 15 per cent in October, when the survey was last carried out.

The latest survey also found that more people are now saving, with 30 per cent of respondents saying they were putting money away every month, compared with 22 per cent in October.

A fifth of respondents to the survey said they would not be able to go away on holiday this year.

Gavin Kelly, the Resolution Foundation’s chief executive said: “The longer households cut back on spending, the longer it will be before we see real economic recovery.”

The survey is part of a wider report by the Resolution Foundation, which will be launched today.

Called ‘Squeezed Britain’, the report will highlight the pressures on low- and middle-income households.

Last week, housing charity Shelter warned that more than a third of people have cut back on their food bills in the last year, in order to pay their mortgage or rent.

This represents an increase of 44 per cent since 2008.

Campbell Robb, chief executive of Shelter, said: “These staggering findings show just how many millions of people are cutting back on essentials as the continued squeeze on incomes starts to really bite.”

National money education charity Credit Action today revealed that one person is declared insolvent or bankrupt every 60 seconds during the working week.

Based on statistics gathered in the third quarter of 2011, the charity estimates that 331 people are made insolvent or bankrupt every working day and 101 properties are repossessed every day.

The current high level of unemployment is a major factor in tipping people into debt and between August and October 2011 1,764 people a day were made redundant.

The average household debt in November, excluding mortgages, fell slightly to £7,982 in November from £7,995 in October.

When mortgages are included, the average household debt increased slightly to £55,816 in November compared with £55,815 in October.

For the UK as a whole, personal debt totalled £1.451 trillion at the end of November 2011, with £173 million being paid daily in interest alone.

Michelle Highman, Credit Action’s chief executive, advised people experiencing financial difficulties to seek free advice from Citizens Advice or the Consumer Credit Counselling Service.

Last month the Insolvency Service reported a worrying trend for record numbers of young people to become insolvent.

Young people are increasingly turning to Debt Relief Orders, a type of insolvency only introduced in 2009, which wipes out debts after a year unless there has been a change in personal circumstances.

There is a fee of £90 and no need to go to court but although this seems like a quick and cheap solution, the holder of a Debt Relief Order will be unlikely to be able to secure a mortgage, credit card or loan for six years.

Debt Relief Orders are only available to people with debts of less than £15,000, who don’t own their own home and have less than £300 in savings or other assets.

The Family and Parenting Institute (FPI) today warned that families with children will be worst affected by the Government’s proposed changes to tax and benefits.

A study by the Institute for Fiscal Studies on behalf of the FPI suggests that the average income of families with children will fall by 4.2 per cent by 2015-16, representing a loss of £1,250 a year.

For families with four or more children, the average drop in income will be even higher at 5.2 per cent.

In comparison the study calculates that average household income will fall just 0.9%, or £215 a year.

Dr Katherine Rake, the FPI’s CEO said: “This research confirms that families with children are shouldering a disproportionate burden”.

Although the government will launch the phased implementation of Universal Credit benefit from 2013, the overall change for families will be negative, according to the report.

Universal Credit, which will replace Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit, is designed to increase the incentive for people to work.

It is also expected to protect the incomes of the poorest families, however cuts to child benefit for high-earners, a reduction in tax credits and VAT at the higher rate of 20 per cent will all have a negative effect on family incomes.

The FPI’s report has prompted criticism of the Prime Minister’s pledge to create “the most family-friendly government ever” and confirms the charity’s earlier warnings that austerity cuts would hit already hard-pressed families.

Following the Chancellor’s Autumn Statement in November Dr Rake warned that the plans offered “old comfort for stretched family finances”, although she did welcome a promised increase in investment in childcare for two-year-olds.

The number of two-year-olds receiving free nursery care will be doubled, with an additional £380 million a year in funding by 2014-15.

The Office of Fair Trading (OFT) is increasing its scrutiny of payday loan companies after the number of complaints about them soared.

In a report to the Government, the OFT revealed that the number of complaints received by helpline Consumer Direct about payday loan companies more than doubled to 1,535 in the 11 months to November.

In 2010, the number of complaints received by Consumer Direct in the whole year was just 700.

Complaints to the Financial Ombusdman have also increased – by 72 per cent this year, compared with 2010.

Payday loan companies have been found to be breaking advertising rules and the OFT is checking the websites of around 50 firms.

Payday lenders are also failing to check if customers can afford to take out a loan.

They often promise a decision on a loan within minutes, a clear indication that the correct checks are not being carried out.

Rolling over a loan can lead to hefty charges which can soon send a debt spiralling out of control and the OFT is investigating complaints that they do not explain their charges adequately.

Other concerns include the misuse of continuous payment authority, which allow payday loan companies to take funds from a borrower’s bank account even if the account is overdrawn.

The OFT has the power to confiscate companies’ consumer credit licences if they fail to adhere to guidelines.

Earlier this week debt advice groups warned that official data on the short-term loan market is two years out of date.

The Centre for Responsible Credit is calling for a national database of short-term loans to be established urgently.

R3, the trade body for insolvency practitioners, estimates that 3.5 million people will seek a payday loan in the next six months.

The OFT is due to carry out a formal compliance review of the lending market early next year.

Although stores have been forced to start their sales early this year to persuade shoppers to part with their money, nearly a third of people in the UK will go into debt over Christmas.

Fifty-eight percent of this group will put more spending than usual on credit cards and thirty-nine per cent will go overdrawn to fund Christmas according to a survey carried out by YouGov on behalf of banking software company Intelligent Environments.

Others will take out personal loans or borrow money from friends and family.

The survey of 2,015 adults found that 11 per cent of people in the UK will lose track of spending over the festive period and people between the ages of 25 and 34 were found to struggle the most with money.

Sixty-four per cent of this group expect to incur debts or arrears of some kind as a result of Christmas expenses.

Jerry Mulle, sales and marketing director at Intelligent Environments, said: “Christmas is typically a cash-strapped time of the year but as harsher economic conditions start to bite the number of people falling into debt or behind on their payments looks set to rise.

Another YouGov survey, this time commissioned by housing charity Shelter, also highlighted people’s willingness to go into debt in order to buy Christmas food and gifts, to the extent of putting their homes at risk.

Out of 1,029 adults surveyed, one in twelve said they would miss paying their rent in order to pay for the cost of Christmas, and one in fourteen said they would miss a mortgage payment.

Shelter warns that cuts to jobs and housing benefits and the high cost of housing is creating the conditions in which homelessness is likely to rise.

Graeme Brown, the director of Shelter Scotland, said: “We urge people to think very carefully before delaying rent or mortgage payments. It can seem like a quick fix, but can have long lasting implications.”