Brits blow £150 within 24 hours of getting paid
The average Brit spends £153 within 24 hours of payday, while 10% splurge more than £500.
A fair few treats are included in the bumper spending day, which also sees people pay bills and purchase essentials, suggesting some of us spend irresponsibly.
Some 15% admitted to spending frivolously immediately after payday, with a fifth (19%) stating they felt the need to treat themselves to a special purchase as soon as they are paid. A further 13% said they go on a spending spree most months.
On average, workers would need to earn nearly three times the UK average monthly income of £1,484.44 to sustain their immediate spending habits post payday throughout the month, while those who spend a whopping £500 within 24 hours are using more than three quarters of the wages immediately.
Feeling the pinch
With such heavy spending, it's no surprise that people struggle towards the end of the month. Some 14% admit to feeling the pinch, 10% said that they always run out of cash in the days leading up to payday, while nearly a third (31%) have to rely on credit cards to see them through the month.
However, in a sign people attempt to budget, the majority of workers said they spend so much in the 24 hours after payday because they had arranged their regular payments and direct debits to leave their accounts around that time.
Nerys Lewis, head of credit cards at Confused.com, said: "It's great news that so many Brits are organised with their finances and plan their direct debits around pay day. This is a great way to budget for the month ahead, but with so many of us admitting to relying on credit cards, overdrafts or payday loans to get to the next pay day, it's clear many of us have room for improvement."
Short-term cash loans designed to be borrowed mid-way through the month to tide the borrower over until they next get paid, whereupon the loan is settled. Generally used by people with bad credit ratings and/or no access to short-term credit such as an overdraft or credit card. Like logbook loans, this type of borrowing is hugely expensive: the average APR on payday loans is well over 1,000% and in some instances can be considerably more.