Consumers ''are risking debt by not planning for the unexpected''

By MoneyhighStreet Staff. Published on May 29, 2008 This post currently has no comments.

Big decision
A new report has warned the current economic uncertainty means that consumers are increasingly worried about getting into debt.

Research from Prudential found that 52 per cent of Brits think their financial situation their most pressing concern.

Despite this, seven per cent said they have not taken any measure to try to guarantee their financial future financial security.

In general homeowners are worried that about paying bills on time (85 per cent) and calculating and sticking to household budgets (35 per cent).

"There is obviously a gap between what issues we, as a society, are worrying about and what we''re doing to alleviate these worries," commented Sammy Rubin, chief executive of PruProtect.

"Protecting ourselves in the event of changes to our personal circumstances can take a huge weight off our minds."

Recently, Egg reported that a quarter of people in Britain have no financial safety net, which could mean they would get into debt if something unexpected occurred.

Tobias van der Meer, head of consumer banking and investments at the online bank, commented: "As a rule of thumb, it has long been considered sensible for families to have cash savings of at least three months income, for any of life''s emergencies."