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Supplementing the salary

Supplementing the salary

Category: Savings

Updated: 27/01/2014
First Published: 27/01/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

January is synonymous with the blues, but a lot of people are feeling the pinch when it comes to their pocket too.

Nearly half of consumers (46%) are feeling a bit spent-out over Christmas and are having to supplement this month's salary to make ends meet, according to research from Lloyds Bank.

Those with savings are dipping into them to top up their wage - 46% of consumers on average - and the same amount are going into their overdraft to help them get through to the end of the month.

Applications for bank loans will double this month and those using payday lenders is set to rise to 9% compared to 5% during an average month, while the younger generation are turning to the bank of mum and dad with 33% of 18 – 24 year olds borrowing money from family and friends.

Philip Robinson, director of current accounts at Lloyds Bank, commented:

"Christmas is an expensive time of year, the financial toll the festive season takes can be considerable. At this time it becomes more important than ever for us all to take control of our finances to avoid overspending and the potential circle of debt that can follow.

"New Year resolutions can start with taking some simple financial steps to avoid overspending."

So will lessons be learnt for next year? The best way to approach any big event like Christmas is to save regularly during the year, so you're not spending money you don't have.

What Next?

Compare our savings accounts and put a little away often to be prepared for next year

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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