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Debt threshold increases

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People only see themselves in serious financial difficulty once they are in over £15,837 of debt, according to Scottish Provident's Financial Safety Net report.

 

It appears the tough economic climate is having an adverse affect on attitude to personal finances, as the view towards what is a manageable level of personal debt has spiralled out of control. The younger generation has an even larger debt threshold, as they believe they would have to be in more than £16,646 of debt before finding themselves in serious financial difficulty.  The over 55s debt threshold is slightly lower at £14,424.

 

If diagnosed with a serious illness or suffered a disability that would keep them off work the majority (62%) would turn to their family for support.  Around a quarter (26%) would contact their local Citizens Advice Bureau to seek advice, while one in twenty (4%) would contact the Samaritans.

 

Nearly one in five (15%) believe that they would be entitled to full or part time pay from their employers for at least six months to a year, should they need to take a long period off work due to a lengthy illness.  However, the government's Statutory Sick Pay scheme only requires companies to cover their workers for up to six months

 

Susan Barclay of Scottish Provident says, ""It is a worry that some still believe that their current employer or the government would offer them and their family all the financial assistance they need should they be hit by critical illness, disability or even death. State benefits are meagre compared to the financial stability offered by insurance."

Critical illness insurance news: 13 January 2011