Households less than two weeks from the breadline
There is a growing number of people who, should they lose their main source of income, could soon find themselves in financial hot water, with some even facing the threat of a statutory demand.
According to a study of Britons aged 18-64, a third of the population do not have money put aside should the worst happen. As a result the average working family would last just 11 days before having to turn to family, friends or other financial help.
Despite cutting back on such ‘luxuries’ as heating, shopping and even takeaways, the number of people able to save any money has declined from 74 per cent three years ago to 63 per cent in July, August and September (Q3) in 2013.
Andrew Watson fears what a lack of saving could mean for households if they suddenly found themselves facing unemployment:
“While few of us can now save for that proverbial rainy day or pipedream, it is a real concern that so many households have such little financial backup to cover the basic cost of living.
“While employment levels are up we are certainly not out of the recession woods yet and many people remain teetering on the employment edge. One slight nudge and many would have less than two weeks to find a new source of income or begin to face the threat of increased debt and, eventually, even a statutory demand.
“Should it ever come to that our team may be able to help by either having the stat demand set aside or by negotiating a reduction.”
Content correct at time of publication