- Wednesday, 11 November 2009More than a quarter of British parents are failing to put any money away whatsoever, it has been revealed.
That is according to research from Abbey Savings, which indicates that 28 per cent of parents have no savings, with a further 20 per cent possessing an emergency fund of less than £1,000.
In light of the current economic climate, these figures could result in an increasing number of people failing to cope with future outgoings and coming to rely on bankruptcy-avoiding measures such as
individual voluntary agreements (IVAs).
Andrew Hagger of price comparison site Moneynet.co.uk, said: "How will [people] cope when mortgage rates rise from their current low levels and they are forced to find an extra chunk of money each month?
"It's a potential recipe for disaster and long term could lead to more serious debt problems and in some cases people going bankrupt."
The average household debt in the UK (including mortgages) is £58,340, according to figures from Credit Action.
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Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
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Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
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