New research findings from a major lender recently revealed that the majority of workers in the UK run into financial difficulties just two weeks after their last pay cheque, leading many to turn to short term loans to help bridge the gap in their finances.
The report, compiled and released by high street lender Halifax, placed heavy emphasis on the difficulties faced by workers finding it a struggle to find the cash to pay their spiraling household bills amidst the pay freeze. Things have become so dire for a good 10 per cent of those interviewed by Halifax that they begin worrying about their finances just seven days after receiving their pay for the month, leading them to turn to instant cash loans in an effort to gain some financial security.
Halifax interviewed 2,000 adult Brits in order to compile the report, which revealed that the vicissitudes of the current bleak economic landscape is fostering an entire generation of people so obsessive about their bank balances that 20 per cent reported checking their accounts daily. Bank of England governor, Sir Mervyn King, recently commented on the issue, stating that not since the 1920s had their been a period of time so long where real wages failed to rise.
Approximately 1.5 million households in the UK may be facing even tighter squeezes, experts say, thanks to cuts in child benefits leaving a rapidly growing number of Brits no choice but to resort to payday advance lending in an effort to make ends meet. However, responsible payday lenders say that using short term loans as a long-term solution to financial problems is unsustainable, and attempting to rely upon them can result in causing even more problems.