Half of British households would struggle if they faced a big emergency bill and would probably be forced to turn to credit, research shows today.
Fifty per cent of the country’s bank account holders have less than two months’ salary in savings that they could draw on in an emergency, Lloyds Bank found.
Despite a healthier labour market, recovering wages and improved consumer confidence, the research found that a third (34 per cent) of bank customers did not even have a month’s wages stashed away.
Many of those with low savings would be forced to take out credit if they had to fund a big one-off expenditure like a major property repair, car purchase or wedding.
The Lloyds Bank Savings Index found that nearly half (48 per cent) of respondents said they would need to have at least two months’ income in an emergency, while one in five (21 per cent) would need four months’ income or more to cope financially.