New research has found that the number of people who applied for payday loans during the first week of January was double the number for the first week of December.
The Money Platform, a peer-to-peer payday loans company, commissioned a survey which found that nearly half of adults in the UK who are in full-time work exceed their monthly budget on a regular basis. Meanwhile, a quarter of them do not have any money set aside for unexpected costs.
Doing such means you are more likely to take out a payday loan, which can cause even greater financial problems, so it is highly important to budget carefully and be strict with yourself.
There were 2,000 respondents to the survey, with around one third saying they regularly rely on bank overdrafts and credit cards, in order to get by financially.
Charles Balcombe, co-founder of The Money Platform, said: “The middle of January can be a struggle for anyone, but particularly after the expense of Christmas and New Year. The purchase of expensive gym memberships and the start of holiday booking season also takes its financial toll.
“Blue Monday, as it has become known, finds a huge number of Brits out of pocket and in need of a financial boost.”
Those living in London are the most likely to exceed their budget each month, with 55 per cent admitting to doing so. The least likely were those living in the East Midlands, with 39 per cent exceeding their monthly budget.