People ‘should save four months’ salary to avoid debt’

3 February 2009

A new report from Nationwide Building Society has encouraged consumers to ensure they have the equivalent of four months’ salary saved up to protect themselves in the event of unemployment.

The report follows a recent survey from the Office for National Statistics (ONS) showing that nearly two thirds of homeowners aged 34 and under do not believe they could keep up on their bills and debt repayments for more than three months if they lost their jobs.

At the same time, unemployment is at its highest level since September 1997 – over 11 years ago – and a third (34%) of those questioned said they were more concerned about job security than they were a year ago.

A debt expert for Think Money said: “Unemployment has become a real possibility for many of Britain’s workers in recent months, and saving to create a ‘safety net’ in the event of unemployment is a good way for consumers to protect themselves.

“Anyone who finds themselves struggling with debt should seek professional debt advice as soon as possible.”

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