Avoid dipping into Debt before Pay Day!
More people are staying in the red than ever before, because they just cannot keep up with the mounting debt from overdrafts, loans and mortgage repayments.
It has been estimated that most workers go into the red just 27 days after they have been paid. During the past year alone, over 10 million people have gone into the red and over 2 million people are consistently overdrawn. This makes it increasingly harder to stay out of debt, as a large chunk disappears on the overdraft immediately and more people find themselves looking for debt solutions.
Those who manage to stay in the black, often slip into the red on or around the 20th day of each month, which is just four days short from most people’s regular pay day.
These findings show the difficulties that people encounter when the Bank of England’s base rate multiplies five times within twelve months.
Half of the people surveyed admitted that they dipped into their savings or borrowed on credit cards to see them through to pay day. Some people took out a pay day loan, which they had to repay in full along with high interest when they receive their wages.
How can you avoid dipping into debt before pay day?
A healthy budget plan will allow people to see exactly how they can cut back on spending, so as they are not reduced to battling with debt in the run up to pay day.
Consulting with Debt Advice Trust could also help by assessing the financial situation and giving advice on how to turn a carousel of debt into one affordable monthly sum. There are options that will reduce interest charges and free up some extra cash to weather the storm leading to pay day.
