Brits turn to credit cards three weeks after getting paid

It has been claimed in a recent report that millions of Brits are able to manage for around three weeks or so after getting paid before they are forced to turn to their credit cards. The reliance of many Brits on credit cards has increased as a result of soaring living costs, spiralling bills, frozen wages and government cutbacks. All of this has led to people being unable to manage as well as they used to in terms of their finances.

Whereas in the past consumer wages may have lasted more people for the full four week before the next payday came around, many are now finding that it lasts for only three of the four weeks, leaving them with a week where there money has run dry. This is the point where millions of Brits are turning to their credit cards to fund their living costs for the final week before payday comes around.

The research showed that around a quarter of consumers in the UK turn to their credit cards once they have run out of cash in their current accounts. The majority tend to run out of cash around three weeks after getting paid, at which point they turn to their credit cards. However, around one tenth of those that have to subsidise their monthly spending with a credit card are only able to manage for fifteen days before having to turn to their cards.

An official involved in the research said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. If you’re the type of person who doesn’t pay off their card every month, you need to look at the steps you can take to reduce monthly expenditure before turning to credit products. Budgeting is crucial at the moment and people will be amazed at how much cash they can free up each month by simply sitting down and going through their finances.”

Tags: budgeting, consumers, expenditure, spiralling, pinch, person, monthly spending, type

Only quarter of Brits have adequate insurance cover against loss of income

A recent study carried out has shown the low level of insurance protection cover amongst Brits against loss of income in comparison to the reliance of British households on more than one income. According to the study almost fifty percent of households in the UK rely on more than one income in order to cover living costs, spending, and expenses. However, only a quarter of Brits seems to have adequate insurance cover to protect against the loss of their income.

The data comes from the Scottish Widows Protection Report. The information from the report showed the low level of protection amongst Brits when it comes to insuring themselves against loss of income due to situations such as illness or death. The report also showed that the majority of Brits had less than two months salary in savings to cover them in the event that they ended up losing an essential income.

According to the report: “These findings show that if a breadwinner becomes long-term ill – or dies – the average household in the UK does not even have their essential expenditure covered – let alone enough money for those little luxuries.” The report also indicated that even those with over thirty thousand pounds in savings shouldn’t get too complacent about how they would manage in the event of a loss of income: “Many people aspire to do more than just ‘survive’ a crisis – they wish to maintain their current lifestyle.”

A spokesperson from Scottish Widows stated: “The majority of the population is walking a financial high wire without a safety net. Nobody knows what is around the corner, but we have to accept that all too often illness does strike and accidents do happen. If people don’t start to take responsibility for their own financial futures then they could be left in a position where they can’t even cover the essential expenditure in their lives.”

Tags: payment, Insurance, expenditure, company, employed, income, scottish widows, cover, lifestyle