50% run out of cash on 21st

The 21st of the month marks the day when half of Brits run out of cash – seven days short of payday.

Rising food prices and household bills are increasingly biting household's budgets, with 28 per cent of people running out of cash – using overdrafts, credit cards and loans to get by – more than seven days short of payday – typically the 28th of the month.

Pensioners and those on weekly benefits are running short of cash two days before their next payments.

Research by shopping comparison service Savebuckets.com found 57 per cent of men admit to spending beyond their means, compared with 43 per cent of women.

Some 65 per cent of 18 to 24-years-olds run out of cash before payday.

Marc Ames, marketing manager of Savebuckets.com commented: "One in four people are worried about making ends meet as the credit crunch bites.

"With income tax changes coming into effect in April, low income groups could find it even harder to make their earnings last in months to come."

Further pressures are coming, as the push to keep up appearances forces many homes into debt – despite continual warnings of the credit crunch making borrowing harder and the economy heading into slowdown.

Figures from moneysupermarket.com show 15 million Brits have racked up debts of £35 billion keeping up with the Joneses.

Richard Mason, managing director of insurance at moneysupermarket, said: "With the credit crunch taking hold and the housing market faltering it's worrying to see that so many people are spending and borrowing beyond their means to try to keep up with the lifestyles of others.

"Consumers need to take immediate stock of their household budgets to identify the pressure points and seek money saving opportunities."