Half of Britons run out of cash before payday – leading them to turn to dishonest lenders

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Exclusive research for Mirror Money shows that by the end of this month, those who turn to payday loans will have shelled out over £ 214million, which equates to £ 28 per second.

It precedes a whole series of price hikes next month

More than half of us routinely run out of money before payday, a new report reveals.

And more than two-thirds of workers between the ages of 16 and 24 find it very difficult to extend their wages to last.

The struggling areas of the UK were London, Wales and Northern Ireland, according to a survey of more than 10,000 workers by the Yorkshire Building Society.

And that leads to the lowest savings-to-income ratio level since 1963.

Yorkshire estimates that 7.5 million working people don’t save and two in five respondents expressed concern about their finances.

Mike Regnier, Managing Director of the Company, said, “We are a nation of spenders, not savers, due to daily challenges that can reduce our ability to manage our money. “



Even though the hardest working people struggle to make ends meet, it’s no wonder many are forced to go to payday lenders with their high interest rates and fees.

Exclusive research for Mirror Money shows that by the end of this month, those who turn to payday loans will have shelled out over £ 214million, which equates to £ 28 per second.

The myth right now is that payday loans aren’t the big deal they used to be, as Wonga went bankrupt and the Financial Conduct Authority stepped in to make sure people don’t pay back more than double the amount. what they borrowed.



But it’s still a big source of loans for huge sections of society, such as NHS workers and those in supermarkets and fast food chains.

According to Wagestream – the ‘get paid as you go’ online platform that gives employees access to pay when they need it – there is a whole host of help companies with APRs ranging from 49% almost 2,000%.

APRs are calculated based on the loan repayment over one year, while most payday loans are meant to be short-term fixes.

It’s still an expensive way to borrow, and it’s shocking that so many workers turn to this high cost credit just to get through the month.

Take control of your finances

  • Establish a budget. Create two columns: In – wages, benefits, pensions. Out – your regular essential bills, including rent, energy, council tax, insurance, debt repayments, food and travel. Then you can see how much you have left to spend each month.
  • If the money is short, make sure you aren’t overpaying for things like energy and insurance. Make sure you don’t just renew at the end of the deals and always shop around for the best deals.
  • If you don’t have enough to cover basic needs, make sure you don’t miss out on any financial assistance you may be entitled to. Perform a benefit check on turn2us.org.
  • If you are in a constant struggle to make ends meet, get free, independent advice from a charity such as your Citizens Advice or Stepchange Debt Charity on 0800 138 1111 or stepchange.org. Or call the National Debtline on 0808 808 4000.






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