There Ain’t No Sanity Clause — Yet

“It’s all right. That’s, that’s in every contract. That’s, that’s what they call a sanity clause.“
”You can’t fool me. There ain’t no Sanity Clause!”

A Night At The Opera

Aren’t there times when we’ve all wished a contract actually did have a sanity clause? Especially where credit card and loan agreements are concerned; where escalating repayments end up costing many times the amount initially borrowed.

We’re always told not to spend what we don’t have, but for most of us it’s the time of year where the credit cards start to take a battering. We’re just entering the period where, if you pay attention to your credit card cut-off date, you can buy now but won’t have to pay it back until January.

If this doesn’t bother you, then you’re either being very economical with your money, or just as economical with the truth (and I say that statistically speaking): research commissioned by Wagestream reveals that 78% of us in Britain are anxious or depressed about the cost of Christmas. Nearly half of those in work will rely on debt to fund the estimated £540 spent on gifts, food and travel — a figure that’s more than double the £250 “unplanned expense” buffer that most families can just about afford.

The salesman’s catchphrase of “buy now, pay later” is manageable if you know that the late December paycheck will be enough to cover the early January credit card bill, but what if you lack that certainty? That’s the case for the majority of shift workers, with an incredible 90% unsure if they can afford the cost of Christmas. And, coincidentally, 90% of shift workers say that they’d be able to avoid loans or credit cards if they could just access their money as they earned it, rather than waiting for the post-Christmas paycheck and hoping it covers the bills.

If that’s a depressing way to start the festive season, then you can join the 40% that are considering just cancelling the whole thing.

It’s easy to say “don’t spend what you don’t have”, but that’s somewhat hypocritical when money earned in December may not be paid to employees until January.

But what if employment contracts gave people a way to access the money their earning now, so they don’t have to borrow to pay for Christmas? That sounds like a sanity clause we should all start believing in.