7.5 million people reply on credit to fund emergencies
16 per cent of Brits admit they’d have to reply on credit to fund any household emergencies and alarmingly 21 per cent said they would struggle to find £100.
With only 33 per cent of people saying they have access to money for emergencies it looks as though saving for a rainy day is a thing of the past. You can always bet on 1 or 2 kitchen appliances not working at the same time, and things like microwave ovens, kettles and toasters aren’t cheap, let alone the cost of a new washing machine or fridge freezer.
This new research from Alliance and Leicester savings also revealed that nearly half of people couldn’t really afford more than £500 if they need to raise cash quickly. It’s not just the cost of household emergencies, I know my car has at least one major emergency a year, add this to the cost of MOT, servicing and new tyres and you can easily be faced with a bill of more than £500.
Manager for Savings at Alliance & Leicester, Hetal Parmar, commented: “The reality of being a homeowner means that at some point you will inevitably have to pay out for repairs such as broken boilers and faulty appliances. We would encourage people to start saving sooner rather than later to avoid a basic household emergency becoming a financial headache.”
“Compared to our research from 2005, people are beginning to build up their savings pots for repairs around the home, but there is still a long way to go. The soaring cost of living will undoubtedly mean incomes are stretched but even by just putting a small amount aside each month you can easily build up a household fall-back fund in no time.”
67 per cent of people, and I’m one of them, say they have felt the affects of rising fuel prices, food and utility bill prices over the last 12 months. Insurance premiums are also increasing.
The cost of living in the UK is stretching the average household to breaking point and the best way to cut costs is to compare prices wherever possible to ensure you get the best deals. You can easily compare insurance quotes on insurance for your car or home and also make sure you check out internet prices on goods like washing machines and fridge freezers, even a toaster or kettle may be cheaper if you buy it online!
>>Click here to compare prices on kettles, toasters and white goods!
>>Click here to compare insurance quotes online and find the cheapest deal