As economic troubles continue, a large number of consumers are living from pay check to pay check and buying their essentials at the beginning of the month when their bank balances are looking healthier.

This observation was made by Wal-Mart, which claims to have witnessed a surge in sales of items such as baby formula during the first weeks of every month.

At the same time, credit card use is waning as shoppers adjust their spending habits to cope with the financial downturn and its effect on their wallets.

Eduardo Castro-Wright, president and chief executive of Wal-Mart's US operations, described the shift in spending behavior as "disturbing".

"Clearly, most of our customers have maxed out," the Pasadena Star-News quotes.

A survey carried out by online market intelligence firm BIGresearch revealed that many cash-strapped consumers are turning to haggling as a means of securing discounts on their purchases.

Consumers struggling to stick to their monthly budget as the result of a financial emergency may find pay day loans a viable solution.

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