1 in 3 Brits ‘Completely Unable to Save’

February 6, 2017

As many as one in three adults living in the UK now find it impossible to set aside any money as savings on a monthly or an annual basis.

That’s according to a new study carried out by the debt help charity StepChange, which is urging the government to provide more support to people who have no means of saving money and often find themselves in debt.

StepChange has previously estimated that around half a million British families could avoid problem debt if they had £1,000 or more set aside as savings but its latest research highlights how difficult reaching that position can be.

The charity’s most recent investigations suggest that there are now roughly 14.5 million adults nationwide who have no spare money to set aside each month, which represents 29 per cent of the entire adult population of the country.

Meanwhile, a further 19 per cent of the adult population, which equates to around 9.5 million people, are understood to be able to save some money over the course of a year but typically at a rate of no more than £50 per month.

The issue of not being able to save on a consistent basis is a particular problem for people who earn less than £20,000 per year, with an estimated 45 per cent of Brits in that category currently unable to save.

Worryingly, one in five people fear they would be unable to cope financially for any longer than one month if their income were to suddenly drop by a 25 per cent or more for any reason.

“Not having a precautionary savings pot means that people are extremely vulnerable to falling into severe problem debt,” said StepChange’s chief executive Mike O’Connor in a statement.

“For too many people stretched budgets leave no room to put even a little aside as they struggle to get by, just about managing month after month.

“A drop in income or an unexpected expense pushes people over a cliff from managing to crisis.”

If you live anywhere in Scotland and you’re struggling to cope with your debts or pressures on your personal finances then Scotland Debt Solutions can help. Contact any of our four Scottish offices today to arrange a free and confidential consultation with one of our experts.

 

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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