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People 'unprepared for financial emergencies'

The majority of British consumers are unprepared to face financial emergencies, lacking the necessary funds to cope with various changes in circumstances, according to new research.

Reports from Birmingham Midshires reveal that most Brits would not be able to cope financially with unexpected unemployment, the birth of a new baby, or long term care for an elderly relative.

In total, 95 per cent of people surveyed admitted that they would be financially crippled by having to support an aged relative, while more than 85 per cent could not afford the costs of raising a baby.

Furthermore, 80 per cent of respondents said they would struggle if they were made redundant.

Jason Robinson, of Birmingham Midshires described the findings as "alarming", urging consumers to prepare for the unexpected and save accordingly.

He said: "Much is talked about the need for saving for the long-term, but without an accessible savings pot set aside for that 'rainy day', short-term financial costs can leave families with severe difficulties."

Mr Robinson advised people to put a small amount aside every month in order to build an adequate nest egg.

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29/03/2007 14:33:05

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