Unexpected payments cost Brits more than £175 BILLION – here’s how to protect yourself
The most common unexpected payment is a washing machine or dishwasher breaking down, followed by being landed with a parking ticket
UNEXPECTED payments will cost Brits more than £175 BILLION pounds, according to a new study.
Research of 2,000 adults found that over the course of a lifetime, they will shell out £3,146 each on unanticipated bills.
And on average, their most recent unexpected bill or payment set them back £485.
The research was carried out by online lender MYJAR, whose spokesman said: "We’ve seen studies carried out in the past about how much money people have in their bank accounts, and how much they’ve set aside for rainy days or emergencies.
"But, our research has revealed how much these emergencies will actually cost over a lifetime – and the figure is incredibly high.
"For many, there’s a very real fear of being landed with unexpected bills or payments, as many households budget their regular financial commitments very well, but don’t have a financial buffer to cover anything out-of-the-blue."
Half of respondents said they are anxious about the possibility of receiving an unforeseen expense, with one in 10 rating themselves “extremely” worried.
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Many of the top 30 most common unexpected payments are for absolute necessities.
The most common unexpected payment in the country, according to the study, is a washing machine or dishwasher breaking down, followed by being landed with a parking ticket.
A computer packing-up, damage to a car and boilers breaking also appeared on the list of most common out-of-the-blue bills.
And more than a quarter of British consumers have had to pay out for unanticipated overdraft fees or a pet getting injured or becoming unwell.
On average, respondents think that they encounter three unexpected payments per year, and six in 10 reported that money they’d had to use to cover them had already been earmarked for something else.
How to save up for a rainy day
- MAKE a habit of setting aside some money from your paycheck each month, whether it's £20 or £200. Doing this as soon as your salary comes through means you won't see the money in your account and won't think about it
- Using a separate account to keep savings will help so you don't accidentally dip into them. Either a current account or savings account is good for this if you need flexible access
- Take a look at your spending habits and try to cut down where possible. Switching energy provider, buying own-brand supermarket products rather than branded ones, and taking your own lunch to work are all ways you could make potentially huge savings
- This A-Z list of money savings tips will tell you how to save thousands of pounds without making any big sacrifices.
And 25 per cent said that if an unexpected bill of up to £500 came in, they would struggle to pay it.
To dig themselves out of an unexpected financial hole, Brits are most likely to dip into savings, borrow from family members or sell something of value.
And sometimes, we’re in the position of lending, rather than borrowing. Respondents reckon that in total, they’ve lent £1,800 to friends and family, with 50 per cent saying they’ve been asked in the past.
Four in 10 respondents also admit that an unexpected bill or payment has left them struggling to pay for other necessities like medical care, electricity and gas.
