Pay day countdown: five million workers face new monthly struggle

At the end of the month, many of us have just been paid and are feeling flush, however within three weeks five million (17 per cent) of us will be struggling to pay for day-to-day spending ahead of pay day, and this is happening on a monthly basis, according to Post Office's Current Account Footprint Report.
 
The report highlights the financial tight-rope that many people face.  15 per cent of workers say they find themselves running out of money on a monthly basis, relying on credit cards, overdrafts and savings. This happens yearly for over four in ten people (41 per cent). Across the country, it is Londoners (39 per cent) who feel the most comfortable about relying on other sources of credit at the end of the month, compared to those in the West Midlands (25 per cent) and East Midlands (21 per cent).
 
Overall one in four workers (25 per cent) admits their financial situation has a negative effect on their health. Just over a quarter (27 per cent) state that lack of money in the lead up to pay day causes them all types of stress, while another quarter (25 per cent) say that they have had sleepless nights worrying about how they are going to cover costs in the weeks before pay day. 
 
Many are now adopting a ‘head in the sand' attitude; 17 per cent stop checking their current account at some point during the month.  And the closer to pay day the more likely people are to stop looking at their balance with one in ten (10 per cent) workers no longer checking their balance in the third and fourth week from pay day.
 
John Willcock, Head of Financial Services at the Post Office said: "It is a concern that we are becoming ‘pay day' Britain, just counting down to the next pay cheque.  However, the bigger worry is that so many workers are struggling to balance their income versus their outgoings every month. It is important to check your bank account balance frequently to help you keep in control of your finances.
 
"Keeping a close eye on transactions and budgeting month-on-month will help manage your money and make you feel more in control of your finances; especially important for those who say their financial situation impacts their health negatively."
 
The report also reveals that having a payday buffer means just under one in ten (9 per cent) of us go on a spending spree every month. However, this splurge, usually at the beginning the month often results in people struggling to pay for day-to-day expenses by the end of the month.  Those based in London (13 per cent) were most likely to go on a spree every month and subsequently struggle in the lead up to payday.
 
With the new Post Office current account customers can pop in to over 11,500 branches or at 2,200 ATMs.

For more information, visit postoffice.co.uk