Financial emergencies boost costs
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.”