January 17th: "Poorest day of the year"
Published On 17 January 2007
UK households are set to feel the pinch today, as January 17th is officially the "poorest day of the year", according to price comparison service uSwitch.A combination of overspending in December and an extra long gap between pay cheques sees many households struggle financially in January.
Average disposable spending slumps by nearly a third this month, with households having just £270 to play with after essential bills are paid off. Moreover, many admit they could default on mortgage repayments, council tax and other bills this month.
Nick White, director of personal finance at uSwitch.com says: "The impact of the January financial blues is not restricted to the poorest families.
"With Britain's personal debt levels increasing by £1 million every four minutes, it is clear that consumers need to take some personal responsibility and carefully manage their own financial situation."
Many households are battling with a 44-day lag between pay cheques, with one in five people receiving their December pay cheque two weeks early.
Furthermore, Christmas and the January sales saw Britons hit the high street in full force, with 18 per cent of all personal borrowing for the year accumulated in December.
As a result, 14 million households are now facing a "financial hangover", uSwitch warns, and January 17th is the day when this is most keenly felt.
In an attempt to get finances back on track, half of households plan to cut down on socialising this month and a quarter will rein in the weekly food shop.
