We all have financial difficulties from time to time but while the problem itself is universal the solutions to it are more than a little varied. While turning to loans, overdrafts and other credit agreements may seem the norm, a shocking statistic form an infographic from The Co-operative Bank has revealed that almost one fifth of us (19%) simply bury our heads in the sand to cope with financial difficulties.
A Frugal Christmas and a Debt Free New Year – An infographic by the team at The Co-operative Bank
Over a third of us (34%) turn to credit cards whilst most (42%) fall back on bank overdrafts and a smaller number (16%) take on extra work to try and push through the debt barrier. Of course, while the facts concerning our attitudes towards debts are shocking it is nothing when you consider the statistics surrounding the debts themselves.
The Co-operative Bank found that 22% don’t expect to see any end to our Christmas 2012 debts while most of us will have only cleared them last month (March). A small percentage (10%) will have seen the back of their debt hangover by January’s payday but with summer spending on the horizon and even March noticing an £167.75 increase in spending, financial troubles are far from over.
Overall, 70% of us struggled to make it through January as two thirds of us tried to clear credit card and other debts during the month. Shockingly, most of us had run out of money by 7 January – despite the fact ‘be better with money’ was cited as a recurring New Year’s resolution for 45% of us.
Following the overspending over Easter and summer when a large number of us splash out on holidays, socialising and childcare, September is unsurprisingly difficult on our wallets. In fact, 45% of us admit we struggle to make ends meet after adding an extra £314.50 to our monthly spends over the summer months with 19% claiming June and July are the most difficult months moneywise due to holiday costs.