People could face debt after two months of no work

A new report has shown that most people in the UK would end up in serious debt after only two months of they were to lose their job.

Figures from a leading building society showed that the average person would only be able to survive financially for 52 days if they were to find themselves without a job.

However, there were 36 per cent of people who said that they would only be able to survive 11 days without their job before they started getting in to debt. After this time, many would face the prospect of debt management for example in order to sort out their debt problems.

Out of those that were questioned, only ten per cent of people said that they had personal income protection insurance in place and a further 68 per cent said that they had no idea how they would cope financially if they were to get fired.

The study also showed that the average family had monthly outgoings of £1,445 a month, meaning that if you were to lose your job, you would not be able to manage on the £75.40 a week that the current state pension allows.

The building society warned people to look at their protection needs as they were concerned that many people are living on the edge of being in debt. They also advised that it is important to look into these issues for reasons such as illness as well as losing your job.

Figures recently produced from Credit Action suggested that personal debt levels in the UK stood at £1.44 trillion at the end of May. This figure has increased by 8 per cent within the last 12 months.




After two months, many would face the prospect of debt management for example in order to sort out their debt problems .

The building society warned people to look at their protection needs as they were concerned that many people are living on the edge of being in debt .