UK consumers have been advised to set aside money worth three to six months’ salary to ensure they remain debt free should they face an emergency situation.
According to independent financial advisory firm St Edmundsbury Financial Services, “too many demands” on consumers’ income is meaning that there is not enough money set aside for such situations, suggesting debt help may be needed in unforeseen cases.
“The main reason for people not having enough money saved for important things is that there are too many demands on limited income – clients tend to spend for today and forget about tomorrow,” said Mark Wapshott, a spokesperson for St Edmundsbury Financial Services.
Mr Wapshott added that education about financial matters “should also be improved” at school level, suggesting that a firmer understanding of the ins and outs of financial products could encourage savers and allow them to be debt free.
Recently the Consumer Credit Counselling Service advised anyone needing debt advice to seek help immediately rather than hoping their problems will go away by ignoring them.