Debt within two months if people couldn''t work

Most people in the UK would end up in serious debt within two months if they were unable to work, a new report has warned.

Figures from the Yorkshire Building Society showed that the average person would only be able to survive for 52 days if they suddenly found themselves unemployed.

However, 36 per cent said they would face the prospect of debt just 11 days after loosing their job.

Only ten per cent said they had personal income protection insurance in place and 68 per cent said they did not know how they would cope financially if they became unemployed.

It was found that the typical person has monthly outgoings of £1,445 a month, far more than would be covered by the current state benefit of £75.40 per week.

"It is extremely worrying to see that many Britons are ''living on the edge'' and we therefore urge consumers to take a look at their protection needs in order to assess how they would cope financially if they were taken ill," explained Tanya Jackson, the corporate affairs manager at Yorkshire Building Society.

Recent figures from Credit Action suggested that personal debt in the UK stood at £1.44 trillion at the end of May.

This has increased by eight per cent in the last 12 months.