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Britons may find themselves turning to a loan after a study has revealed that people are experiencing on average five cash-free days after their wage has run out.

Over 60 per cent of individuals told Abbey that they will have to make sacrifices this Christmas as they are struggling to extend the cash in their current accounts to last until their next pay cheque.

Furthermore, the bank claims that disposable income has dropped by 29 per cent in the last two years, which may mean that secured loans could be one option for households to fund everyday expenditures or much-needed home improvements in time for the festivities.

Commenting on the news, Steve Shore, director of banking at Abbey, says: "A staggeringly high number of people regularly fail to budget effectively each month and end up running out of cash before their next pay cheque."

However, AXA recently claimed that unless households enjoyed an income of £70,000, families would have to dip into savings to pay for everyday items.

But one way which may avoid that is to apply for a secured loan, where the total lent could depend on the amount of mortgage owed and household incomings.