Pay rises can make you poorer, the Pru claimed this week, after its research showed that 17 per cent of people get so excited by the prospect of a future pay rise that they spend the money before they get it.
But even after receiving the payout, these spenders can find themselves with a debt hangover, the Pru warned.
Almost one in ten people admitted they had spent their pay rise or bonus, then discovered they had run up debts because they received less money than anticipated.
In the middle of credit awareness week, the study highlights the fact that Britons still overwhelmingly sign up to a spending culture.
Only 23 per cent of people surveyed said they used their pay rises to pay off existing debt.
Pay rises and bonuses "ought to be the trigger to get debt under control", commented Prudential's business insurance director Angus Maciver, not used as an excuse to spend more.
But "many people appear focused on gaining 'pleasure now', spending increases and windfalls rather than saving", he warned.
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