Cooperative Bank reveals financial hangover
The Co-operative Bank have today released results that a quarter of Brits will not have paid off their Christmas debt until their March pay day, with 22% claiming they don't foresee paying off their 2012 debt this year at all.
Results show that the average person 'overspent' by £348.53 in December 2012, with only one in 10 having already paid off their financial Christmas hangover by their January pay day.
Seven in 10 people found January a real struggle to get through financially, with two thirds of those polled using their January wage packet to pay off credit cards, overdrafts and other festive bills. As a result, the average person ran out of money on 7th January and two thirds of people have less disposable income than usual to live on in February with the average person having just £191.76 to last them the whole month. Aside from December and January, which are both notoriously cash-strapped months The Co-operative Bank has tracked which months people feel under the most financial strain. Briton's struggle the most in February and June each year which appear to stem from ongoing debt and the cost of summer holidays. The third most financially difficult month is August, with 13% claiming that childcare costs are a worry during school holidays. The research shows that the average family overspends by staggering £314.50 more than usual during each summer month.
The Easter holidays were also cited as an expensive time for families with the average family expecting to spend £167.75 more than usual this March, with three in ten Brits citing that the money is spent entertaining their children.
However, it's not just about spending, the research showed that 44% of people do save and budget for these extra expensive months, with this group saving on average £89.68 per month. May is cited as the month where most people feel that they can save, after 45% of us Brits making it a New Year's resolution, and six in ten people wanting to save in 2013. Zack Hocking, Head of Savings at The Cooperative Bank said: "2012 was certainly a tough year for most financially and 2013 will see similar challenges.