Credit cards ‘bail out homeowners’

Britons are increasingly dependent on credit to cover household emergencies, according to new research.

The study by Alliance & Leicester Savings found only a third of homeowners can rely on money already put aside to finance big repairs.

Meanwhile 21 per cent would struggle even to find £100 in an emergency – the average cost of a plumber call-out.

Hetal Parmar, manager for Savings at Alliance & Leicester, says: “We would encourage people to start saving sooner rather than later to avoid a basic household emergency becoming a financial headache.”

However, he notes the research did show some improvements in financial awareness, with six per cent more Britons boasting some kind of savings compared to 2005.

A spokesperson for the Council of Mortgage Lenders (CML) recently advised homeowners to keep lenders informed if they are struggling to control their financial situation to stave of serious repercussions including repossession.

© Adfero Ltd

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