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New research suggests Brits over-indulge in post-payday spending

The average UK adult spends almost a fifth of their monthly wages in the first 24 hours of being paid, new research from QuidCo has revealed.

Average payday spending hits £240 on average in that period and it results in 61% of people having little or no money later in the month.

A third of Brits said they “live like kings” in that time period and take little notice of their spending.

Furthermore, 20% of Brits admitted even a pay rise would not impact upon how much they had left prior to the next payday.

However, many Brits also end up regretting their pay day exploits as they have to carefully manage their finances as a result.

More than seven in ten people try to save money from their wages yet nearly three in ten admit to having to withdraw it again before the month ends in order to pay for something.

A further 15% showed good intentions of wanting to save but were never able to actually get around to doing it.

When it comes to spending, clothes, meals out and alcohol are the most popular goods to purchase and the study suggested it takes around four days for normal spending habits to be resumed.

Women were the ones found most likely to believe that pay day has a novelty value, while they then felt the most remorse between the sexes about overspending.

Females were also found to live on a month by month basis between pay checks, with a quarter revealing they were spent out by the end of the month, compared to 18% of men.

Around half of Brits shop around for the nest deals, but 7% only do so when their cash reserves start to run low.

When it comes to limiting spending, treat foods are the first things to be ditched, while eating out and shopping are also reduced.

Given some of the financial issuers highlighted in the study, it is easy to imagine that some Brits would struggle if they were hit with unexpected or large bills.

Car repairs or replacing the boiler could stretch finances to the limit and it is in these instances where unsecured loans could be a solution.

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Andrew Wayland
Marketing Director at Everyday Loans
Andrew Wayland is a financial marketing expert and helped set up Everyday Loans back in 2006. Prior to his position as Head of Marketing for Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years. LinkedIn: https://www.linkedin.com/in/andrew-wayland-9018074