Nineteen percent of workers paid on a monthly basis in Wales, will have spent half or more of their income within twenty four hours of receiving it; a percentage which is lower than in England where the comparative figure is 21%.
The findings come from a YouGov survey carried out for KPMG UK, which looked at spending habits across the UK. West Midlands was found to have the fastest spenders, with a relative statistic of 26%, while Scotland was the lowest at 12%.
The survey also asked what top three outgoings people spent their payday money on, revealing that 66% of people in Wales factored utility bills as a significant spend, with 52% seeing housing as a large payday outgoing.
People in Wales were also shown to be most likely to make a significant payday deposit into savings, with 23% saying this was one of their top priorities in comparison to 18% in England and 15% in Scotland. However as was the case with all UK regions, there was still a large number – 20% – of respondents in Wales who used a significant amount of payday money for credit card debt.
The survey also gave significant insight into spending habits according to age. Across the UK, more than one in five (22%) of 25-34 year olds spend 60-100+% of their pay as soon as they get it, with three percent finding themselves in the red by the end of the day. Conversely, just eight percent of over 55-year olds see more than 60% of their income leave their account on pay day.
The findings tally with the recent FCA study which found 13% of 25-34 year olds are in financial difficulty, having missed paying domestic bills or credit payments in three or more of the last six months.**
Simon Jones, Senior Partner for KPMG in Wales, said:
“It’s encouraging to find that despite the costs of daily living, many in Wales are making saving a priority. However, as with the rest of the UK, there is a concerning number of people spending significant amounts paying off unsecured debt and credit cards.
“It is becoming more common to slip into your overdraft on a regular basis, with the FCA revealing 11% of UK adults have exceeded their overdraft limit or used an unauthorised overdraft in the last year.
“This can leave people vulnerable to unexpected costs, such as a car breaking down, forcing them to further rely on credit or loans. For people routinely relying on overdrafts or loans, we need to consider what else can be done to help them reconsider their financial habits.”