Saving Enough
5m households risking debt problems by not saving enough
A new report commissioned by the Consumer Credit Counselling Service (CCCS) has revealed that more than five million households in the UK are not saving enough to avoid future debt problems should the unexpected happen.
The research, which was carried out by the Financial Inclusion Centre, identified 1.1 million UK households which had less than £1,000 in savings and more worryingly, a total of 4.3 million families which had no savings at all.
The main worry for these households is if the unexpected should occur, such as one household member losing their job. Without savings for situations like this, or for any other sudden expenditure, families could find themselves facing serious debt problems.
The Department for Business, Innovation and Skills (BIS) recently found that 27 per cent of UK households with no savings risk debt management problems in the future by relying on credit for everyday spending. This was compared to just 9 per cent of households which had savings of between £1,000 and £10,000.