ine million people across the UK have no savings and another five million have less than £100, according to new research from the Money and Pensions Service (MaPS).
The survey of 3,000 adults, carried out for Talk Money Week (November 7-11), shows that one in six (17%) have nothing put away and another one in ten (9%) have £100 or less.
This leaves around a quarter of adults living without a financial safety net to cope with the rising cost of living or unexpected bills, meaning some may have to use credit.
MaPS says although credit is an important tool when used and managed well, it’s crucial that people understand what they can afford and have a plan to pay it off.
However, the figures also reveal that many people are already finding this difficult. Among the 79% of UK residents who use credit, two in five (43%) are now anxious about how much they owe. Over a third (35%) are worried about the number of different products they have.
As cost of living pressures start to hit home, MaPS says it’s more important than ever to talk about money before problems set in. However, the survey also reveals that 81% of people still avoid discussing their finances.
Asked why, the most common responses were ‘not wanting to be judged’ (21%), ‘fear of burdening others’ (19%) and ‘shame or embarrassment’ (17%).
Caroline Siarkiewicz, Chief Executive of the Money and Pensions Service, said:
“Millions of people find it a challenge to save and this leaves them vulnerable when sudden expenditure items arise. When you add in the anxiety that they feel with their credit commitments, the weight of that worry can quickly become overwhelming.
“This Talk Money Week, we want everyone to start the conversation with family or friends and share the burden of any money worries. By dealing with the problem head on, people can discover just how helpful free debt advice can be and see the importance of talking to their creditors early. They can also begin to find a way forward, no matter how difficult their situation might feel.
