Monday, May 25, 2009
Category:
Secured Loans
According to The Co-operative Bank Current Accounts, the majority of people tend to spend their wages by the 20th of each month.
This information comes as a result of new research, which also indicates that many people are embracing a ‘live for today’ attitude – irrespective of the currently challenging economic conditions. Such individuals are spending in excess of half of their wages on nights out and shopping trips within 11 days of being paid.
Once an appropriate sum of money has been put to one side to cover bills, most people are left with less then 10 percent of their wage for the rest of the month. In many cases, this then means them relying on credit cards and overdrafts to get by.
John Barker, Head of Current Accounts at The Co-operative Bank, commented: "The research shows that many people are still looking to go out spending straight after being paid every month, but with the current economic downturn, it clearly leads to a much more difficult time later when many cannot get their wages to stretch until they are next paid.
"In the present economic climate developing a household budget is essential to keep spending in check and to identify ways costs can be trimmed. Keeping a much closer eye on their bank account will help people to know exactly what they have to spend".
The study, which was based on an average monthly wage of £1,583, revealed that the majority of Brits spend at least £80 within 24 hours of being paid. This figure then increases to £228 within 48 hours, the equivalent to practically 15 percent of the average monthly wage. By day 11, the average person has spent 50 percent of their wages, which equates to £792 in monetary terms. The study showed that once money has been put aside in preparation for paying bills, the average worker is left with just £48 for the remainder of the month.
With regard to knowing how much money is possessed, the research reveals that, in addition to not having a firm grip on their spending, 40 percent of workers are not aware of the amount of money held within their bank account. This comes down to a failure to check their balance upon withdrawing money and, for 10 percent, a disregard for bank statements.
It would seem that when faced with a shortage of money, 62 percent will refrain from dining out and 36 percent will commence shopping in budget supermarkets. A further 55 percent will put their social life on hold by staying in, whilst 14 percent will switch to eating at their parents’ or in-laws’ houses. As well as this, 18 percent will eat tinned food as opposed to fresh, and 9 percent will get lifts to work with their colleagues.
In light of the current economic climate, The Co-operative Bank Accounts offer five pieces of advice for making your money go further. Firstly, prioritise the reduction of debts. Secondly, devise a monthly budget and do not veer away from it. Thirdly, ensure that you are aware of the amount of money within your bank account by checking it on a regular basis. Fourthly, set aside money for potential future emergencies if feasible. Finally, economise wherever possible.
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Homeowners that are looking to re-organise their finances, particularly following a period of heavy reliance on credit cards, may wish to consider taking out a
secured loan to consolidate existing debts into one manageable monthly repayment. Borrowers will no longer need to juggle multiple confusing debts. When taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
