Fool.co.uk: 70% of people not prepared for recession

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Fool.co.uk: 70% of people not prepared for recession

Fri 24th Oct 2008

Money website Fool.co.uk has warned Britons to take action as the country begins to head into recession.

According to a new study it carried out, seven out of ten people have less than a fifth of their monthly income left over after household expenses have been deducted.

Furthermore, one in seven have no money left over each month and one in eight people spend more than they earn.

Fool.co.uk said it is "crucial" to be able to survive on less than four-fifths of one's monthly earnings.

David Kuo, head of personal finance at Fool.co.uk, said that the full impact of the recession is yet to come and urged people to cut back on household expenses and to put money aside.

"No-one can be certain how long the recession will last, but a cash cushion stuffed with at least three months' worth of household expenses can be a great comfort in an economic downturn," he said.

Earlier this week, Fool.co.uk reported that 37 per cent of respondents to a poll it ran said they would not delay turning on their heating this winter, even if dong so could save £60 a month.

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