14 Jan 2013

According to the Financial Wellbeing and Inclusion Report, commissioned by International Personal Finance (IPF), the large majority of people would find it very difficult to find money for an emergency payment without borrowing (87%) or to save money for a major purchase (88%).

According to the YouGov survey that questioned 11,000 IPF customers across Europe and Mexico, many people would struggle to finance major purchases or an unexpected emergency. In Hungary, only four per cent said they could easily find the money for an unexpected bill or an emergency without resorting to borrowing.

Slovakia (22%) and Mexico (20%) registered the highest number of respondents who could finance an unexpected bill or emergency without borrowing, but in both countries it is still a minority, leaving many people across all IPF's markets without the reassurance they want in times of need.

The survey also found that most households are satisfied with their current standard of living. The only exception to this was Hungary where only 6% of people are satisfied. This contrasts with 45% in Mexico and 41% in Slovakia. Aligned with take home earnings, the older the person, the less satisfied they are with their standard of household living.

Elsewhere the survey showed the majority (79%) of respondents have spent more cautiously in the last 12 months, and a similar number (76%) have been put of making major purchases. This reluctance to spend will not help European economies struggling with depressed levels of consumer spending and the effects of austerity programmes to reduce central Government expenditure.

John Mitra, Group Corporate Affairs Director, commented on the statistic many people seem to be without a financial safety net. He said: "The fact that nearly ninety per cent of people are unable to find money for an emergency payment or unexpected bill, or are unable to save money for a major purchase shows many people's incomes are already very stretched.

"It is interesting to note that more consumers in Mexico believe they can find or save for a major purchase, but many people in this rapidly growing economy have still been put off making a major purchase in the last 12 months.

"Credit has an important role in helping these people with short-term borrowing requirements, so long as it is done responsibility and people are not over indebted. Affordability is critical, as is giving people certainly and transparency on what their final repayments will be."

The Financial Wellbeing and Inclusion Report is now available here.

Further information

Contact Nick Jones, Head of Communications, International Personal Finance

+44 (0) 113 285 6815

nick.jones@ipfin.co.uk

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