Overspending is a problem that any of us can find ourselves in at any given time. Whether you’re a blue collar worker or an office clerk, you may struggle to stretch your monthly wage, especially during the current financial climate.
With the cost of living rising and an increase in taxation, coupled with the freezing of many salaries, it’s getting tougher and tougher each month for your wages to see you through the month. What many people end up doing is spending more than they can actually afford.
Whether its overdrafts, loans or credit cards, there are options everywhere for whoever is in a financial struggle. Whilst some people keep a close eye on their outgoings, being strict on what they spend, others are more frivolous when it comes to spending. Generally speaking, overspending occurs amongst any age group, depending on their circumstances. However, there is increasing evidence which is telling us that it’s younger people who are in fact the worst age group for overspending.
Several reports have indicated that there may well be an impending crisis amongst the population, notably amongst young people. Savings are being dipped into to pay for luxury items that many household don’t want to give up, e.g. a luxury holiday or large Christmases. Overspending here is being offset by the use of savings, however not everyone has savings, especially younger consumers.
39% of 18 – 34 year olds have no savings whatsoever, and 36% of 16 – 24 year olds are finding that they are constantly out of money. The cost of living, the reduction in wages and no savings to fall back on means it’s particularly tough for this age group. So if you earn a modest wage which can’t see you through the month and you have no savings to fall back on, what do you do?
As mentioned, overdrafts, loans and credit cards are all potential lending solutions for any young person who is need of financial fix. Some of these solutions are more applicable than others given each person’s individual circumstances.
For example, as a young person you may have spent the majority of your monthly wages on rent, food and bills. Unfortunately, even if you have allocated all of your money for the month, something unexpected can happen, e.g. your bike or car may suddenly need fixing. This can hit you in the pocket and because it’s unexpected you may not be financial prepared to pay.
In this circumstance what would a young person do? Well payday loans are an unrivalled financial solution for any young person needing to take out a small amount of money, which they can pay back on their next payday.
The beauty of payday loans is that anyone can get approved one, provided you’re over the age of 18 and that you’re in full time or part time work earning over £500 per month, which gets paid via direct debit into a valid bank account.