Lack of savings leaves Brits at risk

Research for IFA Promotion shows that less than a fifth of Britons have savings stored “for a rainy day”, with 43 per cent being forced to turn to families for help.

David Elms, chief executive of IFA Promotion, commented: “Our research has already revealed some alarmingly blase views on balancing our spending, saving and debt; but without even a basic savings safety net, millions of us risk the possibility of being plunged from indulgence into hardship.”

Despite this lack of savings, spending and debt, particularly credit card debt, is reaching new levels, with the average Briton £4,000 in debt.

However, IFA Promotions warns that an interest rate rise could be on its way which could severely affect those with loans and mortgages.

Worryingly, five per cent surveyed said they would take on more debt to try and get themselves out of a financial crisis, while 15 per cent of women have no idea what they would do if one hit.

With a risk of debt becoming more likely and a lack of financial planning apparent, Mr Elms called for people to take on financial advice and to start saving.

David Mond, chief executive of debt experts, ClearDebt, commented that it was rarely wise to borrow your way out of trouble: “Unexpected financial crisis is one of the most common reasons people fail to manage their debt.

“Extra borrowing is rarely the answer. Instead, not only should people save, they should ensure they should borrow prudently.

“Imagine your monthly payments doubling,” added Mr Mond. “If you could not still afford to pay then you are too deep in hock.”