Is Wales’ available balance below zero?

24% in Wales have an available balance of less than £10 at the end of the month once all bills, debts, and living costs have left their account

FairMoney.com today reveals we might be over the January slump but we won’t be free of our financial woes this year

The pending payday for many, could not come quick enough. The weeks since our last payday have been pinching consumers more than ever. However, this pay cheque has barely been seen by the staggering amount of UK consumers that have been pushed into the jaws of unscrupulous lenders, bringing our available balances plummeting back down. As our pay cheques land in our bank accounts over the next few weeks, this will be spent consolidating existing debts from the past month. Given the pressures of the beginning of the year, many have been pushed towards payday lenders and high-cost credit to merely get by. Such rates of interest are crippling consumers and this payday will take people one step forwards and two steps backwards financially.

Wales:

• 24% in Wales have an available balance of less than £0-10 at the end of the month once all bills, debts, and living costs have left their account
• 18% have a credit card statement for the month of December 2018 for over £1000 in Wales
• 10% of Wales currently have debts over the value of £2000
• 8% in Wales have already contacted a payday lender, used a loan facility or credit card in January for £30-75
• 8% in Wales said that if they don’t borrow less than £50 soon, they would be on the cusp or have already started receiving formal threats from their lender
• 7% of those in Wales would need to borrow £500-1000 to cover their costs after the festive period
• Wales expect their winter fuel bill to be £433.20
• 6% in Wales would need £100-200 extra per month to cover their monthly expenditure

Household Statistics for Available Balances

• 28% of Brits will have less than £20 in their available balance in the first half of 2019
• 16% of Brits will have nothing left over the next six months
• 18% of Brits have debts valuing over £2000
• Nearly a quarter of Brits (23%) have loans and credit cards debts of over £1000
• 18% of Brits need an extra £100 a month to keep up with their bills and repayments; 6% need to borrow more than £500
• 7% of Brits’ December 2018 credit card bill is over £2000
• Nearly a quarter of Brits (23%) have debts including loans and credit cards but excluding mortgages, of over £1000
• 11% of Brits need an extra £100-500 a month to cover their expenditure

Average Debts and Available Balances

• The average winter fuel bill is £288.40
• The average Brit needs an extra £73.60 per month
• The average December credit card bill was £486.10 
• The average debt value excluding a mortgage is £640.90

Brits have been putting an average of £252.30 of their January spending onto loans or credit cards, which is predicted to take months to clear, putting consumers back several steps financially well into 2019. Such an expensive start to the year means that a large proportion of us are pushed to high interest credit cards and payday loans, a cycle of poverty amounting to anxiety and stress amongst British workers.

Dr. Roger Gewolb, Executive Chairman and Founder of FairMoney, has responded to the research:

“Consumer finances are in the worst shape they will be in all year, people more than five weeks since they were last paid and with mere pennies in their current accounts. With credit card and utility bills to pay before many of us feel more financially comfortable, consumers need access to fair finance to help tread water amidst this difficult period. With such pressure, it’s not surprising that consumers turn to payday lenders and credit cards to battle the financial burden. Payday loan providers have their place in society for cash-strapped Brits, but most people have been abandoned by poor lending practices that stem from the financial crash of 2008. We’re over a decade on – things need to have changed. Millions of people are being pushed to extortion at the hands of high-interest credit options – one of the biggest atrocities to affect UK society. We must protect our communities and consumers, reprimand bad lenders and strive for borrowing practices that are fair for all.”