Lack of financial safety net to result in higher debt woe?

More people in Britain may soon require debt management help because of their lack of a financial safety net, new research has suggested.

HSBC has found 30 per cent of adults in the UK have less than £249 set aside for money emergencies – meaning 15 million Brits would not be able to survive from Monday to the weekend on their savings.

The survey involved 2,100 people and revealed 19 per cent of respondents do not have any cash to fall back on at all.

Moreover, the average recommended financial safety net is the equivalent of three months wages – which works out at an average of £4,683.

And it appears the younger generation are the least prepared for any cash related problems.

Just over 40 per cent of those aged between 25 and 34 have less than £249 placed to one side, while a quarter have no cash set aside.

The investigation also revealed women have saved less money than men, with 13 per cent having less than £249 and 20 per cent admitting to having zero funds – compared to the respective figures of 17 per cent and nine per cent saved by males.

From a geographic perspective, people in the North West are the least likely to have cash stored away, with 25 per cent claiming to have no financial provisions in place.

A recent study carried out by Scottish Provident discovered around four million UK adults would not be able to enjoy their current lifestyle past February next year if they were forced to survive solely on their emergency savings.

By James Francis