Those surveyed said they planned to avoid socializing to help manage their finances at the beginning of the year, while others said they would not buy new technology.
Friday 19 January 2024 04:53, UK
A third of British adults will run out of money by the end of January, new research has found.
According to personal finance company Credit Karma, 56% of adults have spent their entire monthly income by January 20 due to the financial burden of soaring winter bills and Christmas expenses.
As a result, many people are likely to turn to alternative funding sources such as credit, with the most likely filing date being January 19, the finance company said.
The most common credit options were credit cards (22%), buy now, pay later (6%), car loans (4%), and personal loans (4%).
Credit Karma general manager Akanksha Nath said: “Many people will have to wait even longer to receive their paychecks and also have to deal with expensive winter utility bills, which will reduce the cost of Christmas. height is often left at the end of the January budget.
“That’s why now is the time to consider budgeting tools to help you plan your spending.
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“If you took out debt over Christmas, consider the best way to pay it off, whether that’s by consolidating your debt or looking for a favorable balance transfer offer.”
To help manage their finances at the start of the year, 26% of those surveyed said they planned to avoid socializing and 47% said they would cut back on new technology purchases.
Meanwhile, 29% of people said they plan to apply for credit in January to cover essentials and necessities, and 31% have already used or plan to apply for credit to manage Christmas spending. I answered.
The Credit Karma survey was conducted between 6 and 9 January among 2,000 UK adults.