Independent research commissioned by credit reference agency Callcredit has revealed that 40% of the UK’s working population could not survive for more than a month on their savings alone. This figure peaks to a staggering 53% among the 25 – 34 year old age group.
The impact of the credit crunch means that one in ten people can no longer afford to save and have in fact started dipping into savings to meet their monthly outgoings, with the 18 – 24s most likely to have to resort to raiding their accounts to make ends meet (14pc).
The findings also reveal that one in twenty people are spending over 50% of their salary on unsecured debt repayments. While this remains a relatively low figure it has more than doubled compared to a previous survey conducted in September 2007.
Owen Roberts, head of Callcredit Check, commented, “These findings are a stark illustration of how the credit crunch is already affecting consumers; it’s clear that the rising cost of everyday living is having an immediate impact on our ability to save. Many UK workers are at what could be described as a financial tipping point where just one unexpected unfortunate incident could have dire financial consequences.”