More than one quarter (27 per cent) of UK households have no emergency savings, according to a new survey from ING International.
This figure was slightly above the European average of 26 per cent, and excludes any long-term savings which were tied up in pension funds or insurance policies.
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“The number of households with limited savings indicates how financially fragile many people are,” said Ian Bright, a senior economist and managing director of group research at ING.
“Many simply do not have any money left at the end of the month to put aside. But there are also those who could save but don’t.”
Bright added that he would expect higher interest rates to encourage more people to save.
The survey – which was carried out before November’s base rate increase – also found that 28 per cent of people in the UK with debts would they would struggle with rising interest rates.
Around the world, personal loans made up the majority of debts in most countries, but in UK, Turkey, Australia and the US, people were more likely to hold their debt on credit cards.
Within the UK, 27 per cent had credit card debt, 13 per cent had an overdraft, 12 per cent of those surveyed had debt from a personal loan, eight per cent had student loan debt, and seven per cent owed money to friends and family.Last updated: February 9th, 2018