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Many have already run out of money in first week of January 4 January 2012
James Falla (about the author)

Some 53pc of people in full-time employment said that all of their disposable income has been swallowed up, according to the study by myvouchercodes.

In addition to those who have already blown all their left-over cash, a fifth said they have less than £100 spending money once all bills have been paid to last them the entire month of January.

In contrast, a prudent 14pc of those surveyed said that they were "no worse off" than in other months.

Households have seen their incomes squeezed over the past year as living costs have remained high and workers have endured deteriorating employment conditions, including wage freezes and small pay rises which have not kept up with bills.

Increased borrowing risk

James Falla, personal debt expert at beatmydebt.com is worried that if people have already spent their disposable income in January they will be tempted to borrow more to see them through the month.

"January is a very long month. If you have already spent your available cash in the first week then it is extremely likely that you will turn to borrowing to get you through until February. These people are likely to continue to use their credit cards or worse turn to payday lenders" he said.

Falla added that if you are struggling with your finances you should get expert debt advice as soon as possible.

"If you find yourself in a position where you are having to borrow more to get through the month, there is something wrong and you are at risk of sliding down a very slipperly debt slope. The way to put on the breaks is to get advice about your options from a debt expert early" Falla advised.

"Implemented correctly and in a timely fashion, debt solutions such as debt management plans or individual voluntary arranagements can get your finaces back in control and ensure you do not get into arrears with priority payments such as your rent or mortgage" Falla added.

Source: The Telegraph