| Research from Abbey shows that Britons spent | | | | they are saving has now climbed to 41 pence |
| £48.7 billion on unexpected bills in the last year | | | | borrowed for every pound saved. |
| and that 79 per cent of people admitted that they had | | | | That compares to 35 pence in the previous quarter |
| not budgeted for these unexpected costs. | | | | and an average of 36 pence for 2006. |
| Unplanned building work, unexpected taxes, bills and | | | | Personal debt in the UK continues to rise for a number |
| fees, and forgotten birthdays and weddings all | | | | of reasons and all the conscientious effort being made |
| contributed to financial difficulties. | | | | on saving money is being undone by continued |
| Typically, unexpected bills and costs amount to | | | | increasing usage of credit cards, loans and overdrafts. |
| £1,375 each time, putting people in the position | | | | Further research has also shown that only 49 per cent |
| where they have to use their savings or go into debt | | | | of people are saving enough for their later years and |
| just to meet the costs. | | | | 24 per cent are not saving at all. |
| Of those surveyed, 37 per cent said that they used | | | | Women, the self-employed and people in debt are |
| savings to meet their unplanned financial costs while a | | | | among those least likely to be on track for a |
| further 37 per cent put the debt on their credit card | | | | comfortable retirement as Britons have amassed a |
| and 13 per cent went into their overdraft. | | | | record personal debt mountain of more than a trillion |
| While it may sometimes be hard to know what bills life | | | | pounds after interest rates hit a 48-year low of 3.5 per |
| is going to throw at you, you can prepare for the | | | | cent in 2003. |
| unexpected through building up a buffer savings fund | | | | As the cost of borrowing has started to climb again, |
| and drawing up an over-estimated budget plan. | | | | there doesn't seem to be any relief or easy way out |
| Most experts will recommend that you build up a fund | | | | of debt, especially as most Britons see debt as a way |
| of at least three months salary in an instant access | | | | of life. The best way to remain financially sound is to |
| cash account. | | | | only enter in debt if it is absolutely necessary, not just |
| Recent figures from Credit Action showed that the | | | | for a holiday or that new car. We also need to go |
| total amount of personal debt in the UK topped | | | | back to basics and start drawing up a savings plan |
| £1.3 trillion by the end of April with UK consumers | | | | and a budget to stick to in order to avoid unexpected |
| borrowing more and saving less in the first quarter of | | | | costs or bills. |
| this year. | | | | This article was written on the 27th June 2007. |
| Consumers took out almost 15 billion pounds worth of | | | | This article does not represent 'financial advice' as |
| secured and unsecured debt in the first three months | | | | each persons individual requirements will be unique to |
| of 2007, that's almost 100 million pounds more than in | | | | their needs. If there is something in the article which |
| the previous three months. | | | | you which to rely on then please check those details |
| The ratio between how much consumers are | | | | with any person from whom you purchase a term life |
| borrowing, not including mortgages, and how much | | | | policy at the time of purchase. |