You are here: Home - Saving & Banking - News -

Financial emergencies boost costs

0
Written by:
19/06/2006

Unforeseen problems can cost UK consumers up to £2,000 per year, according to Lloyds TSB.

Every year 60% of the population suffer some kind of emergency resulting in a serious dent in their finances, research from the bank has shown. But only 20% of people have savings to cover the cost. The most common emergencies include paying out for a new boiler – which can cost up to £2,000 – unexpected car repairs or emergency dental treatment.

Most people are forced to use their credit card (5 out of ten), as only two out of 10 people have enough savings to fall back on. A total of 1 in ten can cover the cost with funds from their current account but the same proportion are often forced to borrow from their partner or family.

Jason Nichols, Lloyds TSB consumer lending manager, said: “It’s an unfortunate fact of life that every now and again we all suffer from unforeseen financial occurrences. When our customers experience this they want the ability to be able to choose what is the best way for them to pay for it, taking into account their financial situation at that time.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Britons fail to realise retirement plans

Although 1 in 2 Britons aim to travel the world when they retire, in reality financial limitations prevent most pensioners...

Close