- Tuesday, 1 December 2009Britons have the "blinkers firmly in place" when it comes to financial planning, it has been claimed.
That is according to Bright Grey, which reveals that Brits have grossly overestimated their ability to survive financial setbacks, such as the loss of a job.
The average person believes their finances would last ten months without a job. In reality, this period is just five months.
The number of people adopting
individual voluntary agreements (IVAs) could rise as result of consumers finding themselves out of work and out of money sooner than expected.
Roger Edwards, proposition director at Bright Grey, said: "It's clear that Brits are ill informed when it comes to their finances.
"Not only are they grossly overestimating how long they could survive if they lost their income stream, but even more worrying is that they have no real concept of what they're spending each month."
The average family believes its monthly expenditure amounts to £1,037, while in actual fact this figure in £2,001 – a misjudgment of £964.
According to figures from Credit Action, total lending in October of this year rose by £0.3 billion.
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