This week is debt tipping point when pay is swallowed up by outgoings - survey
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A survey suggests that more than half of adults who expect to run out of money in January will have exhausted all their monthly income by this week. Financial insights provider Intuit Credit Karma reports that a third (32%) of UK adults anticipate running short of cash before the end of January. Among these individuals, 53% predict they will have spent up by January 15.
The financial strain of Christmas shopping and winter bills may push some into debt. As December wages are often paid early, January can be a long month for many needing to stretch their pay further. A similar study last year identified January 20 2024 as the tipping point when people would start relying on funds other than their income to make it until the next payday. In the latest survey, a quarter (23%) of respondents said they had spent more during the most recent festive season than in previous years.
Intuit Credit Karma's own analysis indicates that the most popular date to apply for credit products last year was January 4. Three in 10 (29%) people said they will avoid socialising in January to help their finances, a figure that rises to 38% among 35-to-54 year olds.
Some surveyed also revealed they were still paying off costs from previous Christmas periods in addition to their spending in 2024. Akansha Nath, general manager (international) at Intuit Credit Karma,said: "Many people enter January with stretched budgets, making it a good time to consider a budget planning tool, consolidate debt, or take advantage of interest-free balance transfer offers.".
