- Overall, a quarter of UK adults have less than £100 put away.
- Almost half of people who use credit are anxious about how much they owe.
- A third are anxious about the number of credit products they have.
- Free help is available, but four in five people still struggle to talk about money.
Nine 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%).
During Talk Money Week, MaPS is encouraging everyone to open up about money, plan for their financial future and take free debt advice as soon as they need it.
The organisation says its MoneyHelper service can be people’s first port of call, offering free guidance on topics like everyday money, savings and where to find free debt advice.
It also provides a range of information on dealing with money issues, including step-by-step guides on how to talk to your creditorsOpens in a new window or discuss money with family and friendsOpens in a new window