Research reveals that almost one in three British residents is facing a cash flow shortage. According to a study conducted by the charity Shelter in joint with a financial group, 28 percent of UK residents are facing this shortfall.
Study shows that an average adult spend £165 more per month than what they are earning. Expenses such as mortgages, rent, fuel and standard living costs are now more than most adults in the United Kingdom can afford. At least one quarter adults face monthly uncertainty of whether they will be able to pay their debts in a timely manner. This was evident since three quarters of early adults aging 25-31 years old claimed that they are having financial issues.
As a result, a growing number of people started to cut some of their essentials including home insurance to meet their expenses. 10 percent admitted they did, while 80% of people emphasize the needs of home insurance.
Lee Money, head of the financial group who conducted the studies stated, “Although times are tight and the vast majority of people don’t have spare cash, its important people prioritize what they need above what they want in the year ahead.” He also added, “It’s worrying to see that such a high proportion of people don’t think having home insurance is important, as without it they could be left open to serious risk and further unaffordable expenditure in the long run.”
Brits are encouraged to shop around for the best deal for home insurance, as research shows that premium home insurance have risen by 7% to an average of £143.
The study was conducted to shed light upon the relationship between The Co-operate Insurance and Shelter. During this winter season, donations of £5 have been made to Shelter by The Co-Operative for each new Co-operative Home Insurance policy initiated.