Thursday 5 December 2019

Most workers 'struggle ahead of payday'


Stock photo: GETTY
Stock photo: GETTY
Samantha McCaughren

Samantha McCaughren

More than three-quarters (78pc) of Irish workers claim they feel financial strain in the run-up to payday and almost two in five workers (39pc) say they need to borrow money before the end of the month from time to time, according to new research.

According to the survey, almost one in five (18pc) workers claim that they have used or thought about using a payday loan company to bridge a financial gap with 6pc claiming to have actually used a payday loan company in the past.

The research was commissioned by Wagestream, an income streaming app which allows employees to access a percentage of their own earned wages before payday. It is offered through employers and recently launched in Ireland.

Almost half (48pc) of workers surveyed claim that financial strain has resulted in them having to cancel activities with family or friends while more than two in five (44pc) workers claim that financial strain has resulted in stress and pressure at home.

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Workers aged 18 to 24 (26pc) are significantly more likely to have used a payday loan company to bridge a financial gap.

This figure was more than 20 points higher than all of the other age groups.

Almost three in 10 (29pc) of all workers claim that they are unable to save any money each month. Among those who do save money each month, the average amount of money saved is €409. Male workers (€443) claim to save more than women (€370).

A member of Finance For Good - a collective of fintech firms committed to improving the financial well-being of ordinary people - Wagestream's aim is to "disrupt the short-term high interest loan business model" run by banks, credit card companies and payday loan companies.

The company has already signed up a number of Irish employers to offer the service to their staff. Wagestream commissioned Empathy Research to conduct this nationwide survey.

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