31 July, 2008

According to the study carried out by Yorkshire Building Society that 36% of Britons could only survive for 11 days if they were to drop their job or if unable to work.

The survey revealed that people of Britons are strained or stressed by mortgage payments, rising fuel and food costs and higher utility bills.

The news comes as the UK economy decline and heads towards a collapse.

The research involved the questions with 2001 adults about their spending and savings every month followed by interviews.

Survey revealed that 90% said they don't have personal protection insurance, which covers monthly payments for goods, services and loans at the time of sickness and job loss.

Around 68% of the people admitted that either they don't know how to survive properly or have idealistic expectations of what it would take to survive.

The credit imbalance and housing downturn has meant that job losses are extensive at the moment. In the last fortnight alone, housebuilders including Persimmon, Barratt's, Bovis and Redrow declared the job losses due to the housing downturn while Wolseley, the world's largest distributor of plumbing materials, announced further job losses as a result of the fall in property rates.

The last week figures from the Office for National Statistics revealed that the unemployment ratio in the UK has increased by 12,000 to 1.62 million in the three months from May.

Earlier this week, the Bank of England said it has found bosses confirmed to freeze or cut back on hiring staff to cut costs.
The research from Yorkshire Building Society found that the average monthly spending of those surveyed were £1,445, whereas their average savings is around £2,474. Therefore if the average person is out of job, they could survive only by two months with the amount of their savings.

Commenting on the findings, Tanya Jackson of Yorkshire Building Society said our research reveals that savings are not feasible choice for the majority of consumers to rely upon should they become too ill to work or redundant.

News Source: First Choice Loans.
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