News: Xmas hangover for brassic Homeowners

Wed, 09 Jan 08

Many householders are financially suffering after an expensive Christmas period...

Those who overspent at Christmas may be suffering even further because they were paid early in the run up to the holiday. A study names January 9 "no pay day" because many people have run out of money after the festive spending spree.

Some householders will dip into their savings or rely on credit and loans to make ends meet for the rest of the month, according to Norwich Union. The poll found that 73% of respondents thought they would run out of money before or on January 9.

Spend now, pay later

Four in 10 - 43% - of people surveyed said this month was the most worrying time of year financially while one in five thought bills would be more than salaries. 35% thought slipping into debt this month was inevitable.

The research found that Britons spent on average £781.86 extra over the festive period on gifts, socialising and sales shopping. Dipping into the overdraft facility will be the most popular way of getting by until pay day later in January, the poll found.

"The 'spend now, pay later' culture has to stop," said money expert Cesarina Holm-Kander. "I hope this month is the shock that finally gets that message home. Let this January be the last when you have a 'No Pay Day' before you have even reached pay day."


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