5 scary financial statistics (and how to avoid being a part of them)

Halloween is here – so to get into the spirit of things, we thought we’d share our top 5 scariest financial facts.

1) 53% of UK households have never checked their credit report

We think this figure is mind-blowing! Checking your credit report is really easy and it’s incredibly important for your financial health. Plus, it’s free – so there’s absolutely no excuse not to!

Your credit report is made up of your personal and financial information which lenders look at when you apply for credit. Mistakes on your report could stop you getting approved, but this can be avoided by simply reviewing your details and correcting any errors.

2) 1 in 4 families have little or no savings!

According to a report by Aviva, 1 in 4 families have less than £95 in savings. This figure is associated with low-income households with a monthly earning of less than £1,500.

We know saving is tough, but it’s the key to becoming financially secure, especially for those on a low-income. What would you do if your boiler broke, or if you suffered a loss of income? This is where your savings pot would be your saving grace. We cannot stress enough how important it is.

3) More than 2 in 5 people have fallen behind on paying their household bills

The debt charity StepChange has found a large number of people are behind on paying their basic bills, including gas, electricity and water.

If you fail to make your payments, your suppliers could cut you off and inform the credit reference agencies of your late or missed payments which could impact your credit rating. We suggest setting up Direct Debits or payment reminders to ensure you never forget again. If you’re struggling to afford the costs, speak to your supplier and negotiate a payment agreement that works for you both.

4) 2,799 County Court Judgments (CCJs) are issued every day

That’s more than 1 million every year!! A CCJ is a formal court order to ensure you pay back what you owe. A lender or firm which you owe money can go to court to get a CCJ after they’ve issued you with a default – usually when you’ve missed three or more payments.

You should avoid getting a CCJ at all costs. It’s one of the best ways to ruin your credit score. If you get an adverse credit history, you’ll find it hard to borrow in the future and you'll pay higher interest rates if you do get accepted for credit.

Keeping on top of your payments begins with good money management and budgeting. For more help with this, click here.

5) 336 landlord possession claims and 52 mortgage possession claims are made every day

A possession claim is an action to recover a property. Your landlord or lender will put forward a possession claim if you’ve missed a number of rent or mortgage payments – otherwise known as payment arrears. However, you should be given fair warning before being handed the court order. 

(Statistics sourced from The Money Charity, Step Change, the Guardian and The BBC)