Rise ‘could see workers fall’
People could be worse off after receiving a pay rise, it has been claimed.
According to Prudential Research, 3.4 million Britons get into debt by spending wage increases before they get the money.
Some 17 per cent of adults in the UK have admitted spending cash before they get it, with 9 per cent averaging debt of over £1,000 in the last five years waiting for their pay-out.
Overall, this has resulted in a £2.49 billion combined debt.
This is particularly worrying as a pay rise is supposed to ease financial pressure, commented Prudential's business insurance director Angus Maciver.
"Pay rises and bonuses ought to be the answer to most people's financial prayers but in many cases they appear to be putting people further into debt," he said.
Meanwhile, money charity Credit Action has claimed that the UK has run up a combined personal debt mountain of over £1.3 trillion.
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