December’s payday will occur earlier than usual for a significant number of UK workers to help them better manage finances over the expensive festive period. However, personal finance experts are keen to point out that making your festive paycheck stretch until the end of January will be even more of a challenge this year.
The extended wait between December and January’s payday can cause some to struggle to stay financially afloat. The wait may be even more demanding this year, due to the added pressure of rising inflation and the cost of living crisis.
These factors could therefore increase the number of people turning to borrowed money, credit or BNPL services to help see them through the month of January.
According to a new report, over two-fifths (45%) of Brits currently consider themselves to be in debt, with credit cards being the most common (42%) form of borrowing.
The 2022 Household Debt Report, compiled by the personal finance experts at NerdWallet, also discovered as many as 1 in 6 adults polled for the report (15%) admitted to carrying outstanding debt through controversial BNPL (Buy Now, Pay Later) payment schemes.
Additionally, 47% of those surveyed worryingly admit they may need to take on more debt in the time it would take to pay off existing debt. This may be the case for anyone struggling to stay within their Christmas budget, resulting in taking on additional debt to help make ends meet until the January payday.