It has emerged that 17 per cent of British workers will struggle to pay for daily spending after the three-week mark in a month, according to the latest Post Office Current Account Footprint Report.
The research shows that up to five million working people struggle to pay for day-to-day essentials towards the end of the month in the countdown to the next payday.
The data revealed that under one in five workers were financially struggling ahead of pay day and this was occurring on a monthly basis. This has led to 15 per cent of the sample relying on overdrafts, credit cards and savings to get them through to the end of the month, while 41 per cent will do this at least once a year.
This adds further costs to already stretched household budgets through possible interest charges.
The situation is so bad that many have chosen to even ignore their finances. Some 17 per cent admitted that they stopped checking their current account at one point in the month and ten per cent no longer checked their balance in the last two weeks of the month.
John Willcock, head of financial services at the Post Office, said: "It is a concern that we are becoming ‘payday' Britain, just counting down to the next pay cheque. However, the bigger worry is that so many workers are struggling to balance their income versus their outgoings every month. It is important to check your bank account balance frequently to help you keep in control of your finances."
It is therefore no surprise that a quarter of the respondents believed their financial situation was having a negative effect on their overall health, with 27 per cent and 25 per cent of individuals admitting to having stress and sleepless nights respectively.
Mr Wilcock added that by budgeting on a monthly basis and keeping an eagle eye on bank balances, individuals can manage and control their finances much more efficiently.
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