Many consumers may only be able survive for eleven days
September 16, 2008
According to a recent report a worrying number of adults in the UK would only be able to survive financially for around eleven days in the event that they lost their jobs or were not well enough to work and earn money. Officials have said that the results of the survey show a worrying trend, where many are living on the financial brink, and could easily be toppled over the edge if their income supply is cut off for any reason. It was found that more than one third of adults would only be able to survive for up to eleven days in this situation.
In order to come to this conclusion researchers looked at adults’ spending habits as well as their savings levels. They concluded that many people would hit real problems if they suddenly had no income coming in, as there was such a big gap between the amount of money that many people were spending and the amount of money that they were putting into savings.
Over two thousand adults were surveyed as part of the research, and they were asked about their spending habits as well as the access to savings, including pensions. The average weekly spend was said to be just over £333 per week, which included the payment of bills and debts as well as general spending. However, close to 40% of consumers had less than £500 in their savings accounts to tide them over in the event of a change in circumstances, which means that they could only manage financially for around eleven days.
The research was carried out by the Yorkshire Building Society, and one official said: ‘In the current economic climate, this research paints an extremely alarming picture. Many people’s finances are already finely balanced due to the rising cost of living. But our research reveals that both state benefits and savings are not viable options for the majority of consumers to rely upon for any adequate length of time.’
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