Britons strapped for cash, says Egg

21 September 2005
Research by online bank Egg has found that a third of Britons run out of cash almost a week before pay day, spending the last few days 'in the red'.

The bank found that 18-30 year olds are broke on average a full week each month and Scottish borrowers are the worst money managers, spending 73 days a year strapped for cash.

A spokesman for Egg said: "A staggering 16 million Britons run out of cash each month and often resort to expensive overdrafts to make it through to payday. Consumers can easily slip into the red each month if they don’t have a clear figure of what they can afford to spend."

Egg found that, on average, people are penniless five days before pay day, adding up to a whopping 11 years over a lifetime.

The bank also launched its new hybrid savings account, Egg Money, this month designed to help people separate bills from spending money, in attempt to help them manage their finances more effectively.

A survey by National Savings & Investments (NS&I) last week found that single women are most vulnerable to being low on cash.

The results revealed that a lot of single women feel that they do not earn enough to save and typically earn less than men.

They also lose out on money and promotions by taking time off to raise children, the survey found.

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