Nearly half of British adults have found themselves unprepared for unexpected costs, leading them to rely on friends, family and credit to pay for them. This was the finding of a survey of 1035 people carried out by SuperSaverOil.com, a home heating oil supplier.
At least once in the past 12 months, 44% of Brits have had to rely on a form of credit such as an overdraft or credit card to pay for an unexpected living cost they had not budgeted for. A quarter have dipped into their savings, while 19% say they have even had to borrow money from friends or family to cover the unexpected cost.
Car repairs (72%) were the most common cost Britons have struggled to pay, while two thirds (66%) have incurred unexpected home repair costs such as a broken boiler or a burst pipe.
More than half (52%) have received a utility bill they were not expecting, while almost one in three (32%) have run up a large phone bill they had not budgeted for. Medical costs such as a dentist bill (21%), completed the top five.
Mark Hackett, Project Manager at SuperSaverOil.com, comments: “It’s quite surprising to see how many Britons are having to rely on other sources of funds to pay for unexpected living costs. While budgeting based on ongoing monthly expenditure is certainly better than nothing, it’s important to keep a pot of money aside – a rainy day fund – that is there to use should any significant unexpected costs crop up.
“Unfortunately, it’s quite common for cars to break down, need a new tyre, or for homes to experience a leak, and as annoying as it is, we should be prepared for this financially. Not only will it mean the situation is likely to cause less stress when it does arise, but it will make you feel more financially stable day to day, knowing you’re on top of everything.”
Top 5 unexpected costs for British adults:
- Car repairs (e.g. breakdown costs, new tyres, failed MOT) – 72%
- Utility bills (e.g. heating bill being higher than usual) – 66%
- Home repairs (e.g. a broken boiler, a leaking pipe, an electricity fault.) – 52%
- Phone bill (e.g. call or data charges while abroad, calls to 0870) – 32%
- Medical bill (e.g. a dentist bill, or doctors bill while abroad) – 21%
