A new report suggests that few people will be getting more money on pay day this year, as it is revealed that over half the UK population do not expect a pay rise this year.

The report from USwitch.com suggests that the recession is far from over for millions of consumers and that despite the economy being on the mend, over 16 million workers (57%) do not expect to get more money on pay day this year, and those who do expect a pay rise can expect a rise of just 1.9% – a net monthly increase of just £27.

With the cost of living rising at nearly double the rate of salaries, 5.4 million consumers (11%) are spending more than they earn while over one in four (26%) have nothing left in their bank account at the end of the month. And with the majority of those asked seeing no clear signs of recovery on the horizon in terms of pay, it’s hardly surprising that 31% of consumers believe they will be worse off this year than last.

Extending Overdrafts to Get to Pay Day

With salaries failing to keep up with the cost of living, consumers are increasingly relying on debt to fund their lifestyles. Worryingly, the number of people living beyond their means has risen by 12% since 2008.

Nearly half (48%) of those spending more than they earn rely on overdrafts to fill the gap between their income and their outgoings, while over a third (34%) use credit cards to keep them afloat.

Others, on the other hand continue to look for alternative forms of short-term credit, such as pay day loans, rather than pay expensive bank overdraft penalty charges.

An investigation carried out by the Daily Mail in February revealed that the cost of an unauthorised overdraft with the leading banks worked out to be more expensive than taking out a payday loan.