Over half of UK families and individuals feel confident that, faced with an unexpected large bill, they’d be able to pay it out of their existing finances, according to the latest figures from Equifax, the online credit information provider.
However, this means that nearly half feel they would need to use credit to deal with an unexpected bill for home or car repairs.
For consumers who would need to use credit to deal with unexpected bills, in order to help them have access to finance at the best rate, Neil Munroe, external affairs director at Equifax, has highlighted what he sees as the important of ensuring a credit report is in the best possible shape. Equifax therefore suggests consumers apply for a copy of their credit report, enabling them to ensure that it remains accurate.
Munroe said: “There is definitely a more positive financial outlook for 2014, with our research showing that over half of households surveyed are prepared for the unexpected. But for the other half, there’s still a reliance on credit with two thirds saying they wouldn’t be able to pay this off immediately, adding to their financial burden.”
Comfortable paying an unexpected bill from existing finances:
London – 57% (94)
South East – 51% (82)
South West – 40% (32)
East Anglia – 50% (24)
Midlands – 53% (74)
North West – 48% (61)
North East – 51% (40)
Scotland – 52% (50)
Wales – 30% (8)
The use of credit for an unexpected bill that wouldn’t be paid off immediately:
London – 65% (75)
South East – 60% (62)
South West – 84% (48)
East Anglia – 68% (25)
Midlands – 69% (70)
North West – 73% (69)
North East – 65% (37)
Scotland – 69% (44)
Wales – 73% (16)