Debt problems begin on 20th day after payday
Debt problems begin on 20th day after payday
- Monday, 20 September 2010Nearly half (42 per cent) of British adults are at risk of falling into
debt problems during the last ten days of the month before they get paid.
That is according to research by insolvency trade body R3, which indicated that 11 per cent of people will regularly fall short when it comes to managing their monthly household income, while a further 31 per cent occasionally dip into the red.
The figures come at a time when insolvency levels are at an all-time high, with credit card payments (35 per cent) and spending on non-essentials (25 per cent) the largest expenses for those who struggle to make ends meet.
Steven Law, president of R3, said: "Over the course of the last decade, personal insolvencies have increased by 350 per cent and it is very worrying that over 40 per cent of the British population is finding it a struggle financially to get through the month."
He added that factors such as inflation on basic living costs and potential interest rate rises are likely to see this struggle continuing in the future for many.
Paying off bank loans, covering the cost of big-ticket purchases and making mortgage repayments were each cited as causes of financial hardship for between 15 per cent and 17 per cent of adults struggling with
debt problems.

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