Three-quarters of Britons worried about financial situation, survey claims
'For those that are already living payday to payday, the idea of something unexpected happening can be a large source of stress'
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Your support makes all the difference.Three quarters of people polled for a new survey were worried about their current financial situation.
One in five of the 2,000 respondents said they have no savings to fall back on in emergency situations.
Two thirds said they were worried about how they will cope if they lose their job or receive an unexpected bill.
“Money worries affect 40 per cent of UK employees," said Asesh Sarkar, the chief executive of Salary Finance, which commissioned the study. “For those that are already living payday to payday, the idea of something unexpected happening, such as a job loss or a large bill, can be a large source of stress.
“Saving for a rainy-day fund is difficult for many people, if it wasn’t everyone would have one. However, it can really take some of the pressure off and help avoid high cost loans, especially if something does go wrong, and reduce your financial worries.”
The study also found that one in four respondents thought they would struggle if they faced a long period of unpaid or statutory sick leave and 23 per cent would not be able to cope with the expense of a broken boiler.
Others were concerned about how they would pay for an unexpected car repairs bill (26 per cent), a large utility bill (22 per cent) or Christmas (17 per cent).
However, less than 14 per cent of respondents said they have less than £100 put aside for emergencies, while 39 per cent have less than £1,000 in their rainy-day funds.
The study also found that employed adults believe their savings would last them around five weeks if they were to lose their job.
One in 20 said they would struggle to last a week without being paid. But half of those polled say they have previously needed to rely on their savings to get them through a difficult period, with their funds lasting for 38 days on average.
A third say they been "caught out" by a large bill in the past, and did not have enough money set aside to cover it.
Over 30 per cent of the survey's respondents said they don't have a back-up plan in case they find themselves with little or no income.
Instead, 14 per cent said they use their overdrafts if they need extra money, while almost one in 10 said they use their credit cards.
Over 20 per cent said they ask for a loan from their parents or friends in emergency situations and over 30 per cent said they sell personal possessions at car boot sales or auction websites.
However, some of the survey's respondents said they also take money out for luxuries such as holidays. More than half said they thought they needed to make more effort to boost their rainy-day fund and 46 per cent said they "regret" not putting more money into their emergency fund.
While 29 per cent of those polled described themselves as a "saver", 17 per cent said they are a "spender".
If they had spare money, 37 per cent said they they would save it for when they really needed it, while 14 per cent said they would immediately "splash out" on something they wanted.
More than a third said would rather enjoy their money now than save it for something which might not happen.
SWNS
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