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The money runs out on the 20th day after ‘payday’

More than four in ten adults in Britain (42%) struggle each month to make it to ‘payday’ (11% on a regular basis and 31% occasionally) and the average day this struggle begins is the 20th day after payday. This is according to research by insolvency trade body R3 and comes against a backdrop of record levels of personal insolvency.

R3’s President Steven Law commented:
“Over the course of the last decade, personal insolvencies have increased by 350% and it is very worrying that over 40% of the British population are finding it a struggle financially to get through the month. This is a huge stress in itself and factors such as inflation associated with basic living costs and potential rises in interest rates will not make this monthly struggle any easier.”

The main causes for this struggle have been identified as:

  • Credit card payments - cited by 35% by those who often or sometimes struggle to make it to ‘payday’
  • Spending on going out or non-essentials – 25% of those who struggle
  • Paying off bank loans, ‘big ticket’ purchases, making mortgage repayments - between 15-17% of those who struggle.

R3’s President Steven Law concluded:
“Our addiction to credit cards is still out of control, despite the recession and a ‘tightening up’ of lending criteria. There needs to be a cultural shift in consumer attitude to debt. For too long we have got used to the idea that this is money we are entitled to. Using a credit card is just delaying the inevitable day of payback - the sooner this is tackled and professional advice sought, the smaller the final bill will be for individuals.”

Methodology note: ComRes surveyed 2008 adults online on behalf of R3 between 23rd and 25th July. Data were weighted to be representative demographically of all GB adults.

Where population figures are mentioned, estimates have been extrapolated using the percentages from the results and adult population figures for Great Britain available from the Office of National Statistics (  ). Full tables for the results are available at . ComRes is a member of the British Polling Council and abides by its rules.

R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.