Holiday fever sends Brits into the red

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Having 'rainy day savings' in case life events take a difficult turn appears to be a thing of the past, with one in six people (16%) having to rely on credit to fund basic household emergencies.

Almost half (45%) confess they could afford no more than £500 if an emergency arose, according to research from Alliance & Leicester Savings.

Paying for emergencies

When it comes to paying for an emergency, such as repairing a boiler or replacing a faulty washing machine, 5% of people are borrowing from a friend or relative and over 900,000 Brits say that they would sell something to meet the cost.

Worryingly, almost one-in-ten (8%) admit to not knowing how they would cover the cost of something breaking down. The research also reveals Britons are feeling the pinch even further as their finances are impacted by increasing food and petrol prices.

Even minor problems could cause strain

One in five people (21%) say they would struggle to pay out for something that cost more than £100. With a plumber call-out charge costing around £100, and a new washing machine coming in at around £300, even a minor household problem could cause a strain.

Only one-in-three (30%) would be able to cover a bill for a major expense (such as a new boiler) that would cost in excess of £1,000.

A fifth (20%) of those surveyed said they had struggled in the past to pay for unexpected emergencies such as a plumber's call out fee and almost half (45%) revealed they don't have money specifically set aside that could be used in this situation.

More than a fifth (21%) said that they hadn't been able to immediately replace household appliances because of cash flow problems.

Hetal Parmar, Savings expert at Alliance & Leicester, says "The reality of being a homeowner means that at some point you will inevitably have to pay out for repairs such as broken boilers and faulty appliances. We would encourage people to start saving sooner rather than later to avoid a basic household emergency becoming a financial headache."