Today (13th January) is ‘Debt-Day’ - the point in the month when Brits have completely run out of money, according to a new study.
The findings emerged in a study of 2,000 people, and show that by 13th January, the large majority will be counting down the day to that all important January wage packet.
The research indicates that once December is over, six in 10 people will struggle to cope financially with the aftermath of Christmas.
Indeed, by mid-January, 42 per cent of people will rely on their overdraft to see them through till the end of the month, while 24 per cent will put everything on the credit cards.
A further 40 per cent will begin dipping into the savings to get by, and 18 per cent may even have to start borrowing money from family and friends.
Andy Lucas, Commercial Director at The Cambridge Building Society, which conducted the research said: “It is no surprise that people tend to have more financial worries after the Christmas period but looking at the results from the survey and at the forecasted economic conditions, now is the time when people need to be reviewing their financial situation and managing their finances carefully.
“People make New Year’s Resolutions such as, to lose weight, to stop drinking and smoking, which are all great things to help keep them fit and healthy.
“Many people don’t realise that they can also help get their finances fit by having a financial review.
“A financial review can reveal ways to save money and ensure that people are getting the most suitable financial deals.”
In total, the average person reckons they are short of £898.65 in January.
On average, people expect to go into their overdraft by at least £352.70 in January, and spend £303.45 on the credit card.
And when it comes to dipping into savings, most people will withdraw at least £242.50.
Unsurprisingly then, 50 per cent of respondents expect to be poorer in January 2012 than in any other New Year.
As such, the study shows that people are likely to go to great lengths to survive financially in the early part of 2012.
More than half of those polled are going to be scouring the cupboards for tinned foods until they can afford to get in a decent food shop.
A third of Brits have no intention of going out in the latter half of January, while the same percentage will give up luxuries such as cut flowers, booze and cigarettes.
And two thirds of people polled reckon they have every intention of getting on top of their finances in 2012 – even getting a review at a bank or building society.
With 37 per cent of Brits even citing ‘stop spending so much money’ as one of their top New Year’s resolutions.
Andy Lucas for Cambridge Building Society continues: “The survey shows that two thirds of people have every intention of getting on top of their finances in 2012 but as with many New Year’s Resolutions, many of these people will fail to go through with this.
“Those that do, can really make their finances work hard for them over the next 12 months.”
