Good afternoon / 13.10.08
Corporate Solutions
Corporate Solutions
24 June 2008
Key statistics
Independent research commissioned by credit reference agency Callcredit has revealed that 40pc of the UK’s working population could not survive for more than a month on their savings alone. This figure peaks to a staggering 53pc among the 25 – 34 year old age group.
Worryingly, 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 shock findings also reveal that one in twenty people are spending over 50pc 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, comments “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 of the UK’s workforce are at what could be described as a financial tipping point where just one unexpected unfortunate incident could have dire financial consequences.
“We all need to take an active role in dealing with our debts. The first step is to get a copy of your credit report for a clear view of everything you owe and then review your bank statement to see how much you're paying out each month.
If people are concerned about their debt levels they should talk to their lender before things become unmanageable or speak to an independent organisation such as the Consumer Credit Counselling Service to work out the best way forward.”
Shamima Begum, 26, a marketing executive from Plaistow, East London fits into the ‘one month to meltdown’ category. She has no savings and rents a flat with her sister.
“Although I worked part time through university and managed to secure a job after graduating, living in London is a real financial stretch for me. I ran up some credit card debt while at uni and can’t afford to save and pay that off. I have tried saving in the past but have always had to dip into my savings to make ends meet at the end of each month. I’ve really noticed the rise in food prices and utility bills over the past six months and being realistic, I don’t think I’m going to be able to start putting money aside for at least another year or so.”
Shamima is happy to be interviewed for print or broadcast media.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,057 adults. Fieldwork was undertaken between 16th - 19th May 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
For further press information contact: Jane Fordham, Katie Moore or Sophie Smith at the Callcredit Press Office on 0207 067 0600 or callcreditpr@golinharris.com
