More than six in ten Britons regularly run out of cash before their next pay packet reaches their account, a new study has shown.

Research by Abbey has found 64 per cent of people run out of money an average of five days before they are paid as a result of "bad budgeting".

When faced with a shortage of funds, 31 per cent use their overdraft, 25 per cent rely on a credit card, 25 per cent spend their savings and 11 per cent turn to their loved ones for help, the survey discovered.

Steve Shore, head of banking at Abbey, said the number of people who cannot budget effectively is "staggeringly high".

However, some debtors could be running out of money because the cost of repaying their debts each month has risen following a year of high interest rates.

The government reports there are several options available to those struggling to manage their debt effectively. It suggests debtors ensure they are receiving all the money they are entitled to and not paying too much in taxes.

Other options it lists include debt consolidation, debt management, informal agreements with creditors and independent voluntary arrangements – more commonly known as IVAs.