Britons hit by unexpected bills

Date: 20/06/2007 14:52

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Four out of five Britons are going to be hit with unexpected bills in the next year, with less than half expected to have saved enough to cover the costs, new research has shown.

The unexpected charges could be near to £1,400 on average for each UK resident and amounts to a collective £50 billion, the report by Abbey savings showed.

The retail bank estimated that 50 per cent of British households would resort to credit cards or overdrafts to pay these additional expenses.

But a considerable 37 per cent of households have managed to save enough to pay off these bills.

Reza Attar Zadeh, head of savings at Abbey, advised customers to be prepared in the case of any eventualities: "You never know what life is going to throw at you. However, you can prepare for the unexpected through building up a 'buffer savings fund' to help deal with these shock events."

Mr Attar Zadeh reckoned that a fund of at least three months salary provides a good enough cushion to cover almost any eventuality.

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