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Peer2Peer Finance News | October 23, 2018

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Concern over number of Brits living ‘cheque to cheque’

Concern over number of Brits living ‘cheque to cheque’
Marc Shoffman

ALMOST half of Brits don’t have enough savings for unexpected financial events, a survey claims.

Research from credit reference agency Equifax found 43 per cent of adults have not put any money aside for emergencies such as unemployment, illness or urgent repairs to their home.

Despite the lack of savings, 29 per cent were concerned about their ability to meet all their financial commitments such as rent, utility bills or mortgage payments over the next six months, while 37 per cent were concerned about meeting their obligations over the next two years.

Just a third of renters have put savings aside compared with 67 per cent of home owners, despite 43 per cent of tenants expecting their rent payments to increase in the next year.

Read more: Personal savings allowance ‘hampered’ IFISA

Read more: Savings crisis “looming on the horizon”

“The extent to which people live pay cheque to pay cheque with no financial cushion is a particular concern in the current uncertain economic environment,” Jake Ranson, banking and financial institution expert at Equifax, said.

“Debt levels are on the rise and wherever possible consumers should budget for unexpected expenses. The recent interest rate hike highlights the importance of setting aside some cash to counter any financial shocks.

“To help consumers better manage their finances, companies must ensure they offer products that match an individual’s financial capacity in the long term, taking into account economic jolts that could impact their ability to meet repayments.”

Read more: MPs to investigate how to boost household savings