Recent research has revealed that in the past year, 79 per cent of consumers found themselves in financial difficulty because of unexpected bills and payments.
New figures have shown that Britons have paid out more than £48 billion in unexpected bills and charges over the past 12 months alone.

Each time an unexpected bill has arisen, it has set consumers back an average of £1,375 a month. This could impact upon their ability to make repayments on secured loans, personal loans, credit cards and other forms of borrowing.

While you never know what life is going to throw at you, you can prepare for the unexpected through building up a ‘buffer savings fund’ to help deal with these shock events.
A fund of at least three months’ salary could help consumers with any unexpected personal finance difficulties. These difficulties could also include having to pay for a funeral, having to take unpaid leave at work or being made redundant; times when you’ll not know when you are next receiving your full salary.

On the subject of funerals, it is vitally important that you take out a life insurance policy that will provide for any loved ones that are left behind in the tragic event of your death.

Other areas which can place pressure on consumers’ abilities to make loan repayments included parking tickets, surprise bills and travel expenses.

To pay these unexpected bills and expenses, 37 per cent of consumers said they used their credit cards, with a further seven per cent of respondents borrowing money off a friend or relative.
The study also indicated that those living in the south-east could be experiencing the worst debt management difficulties with 83 per cent of residents forced to make unforeseen payments.

Meanwhile, consumers in Wales and the south-west were said to be able to handle their finances better - as only two-thirds dealt with unexpected expenses in the past year.
Home repairs were reported to account for the largest proportion of unexpected expenditure, costing a total of £19.2 billion, which is an average of £1,206 per adult.
Figures have also indicated that a third of Britons are ‘financial fantasists’. A study revealed that 33 per cent of consumers take out personal loans or count on higher wages in later life to cement their financial future.

Over the last 12 months, the Bank of England has raised the base rate of interest four times, making loans expensive by another 22 per cent. The current scenario is volatile in the sense that there is every likelihood of a further rise in interest rate.
Already, more than 230,000 Brits are missing repayments every month with 1,389,000 borrowers missing repayments in the past six months.
The concern has to be that people are missing repayments on unsecured loans because they believe there’s not as much at stake as missing a mortgage or remortgage payment. Missing repayments is not a way to manage your finances even if you desperately need to put the money elsewhere.

Consumers who miss repayments to fund unexpected bills are risking damage to their credit rating and, potentially, court action. Everyone should have a savings account as high street banks usually offer one when a debit card account is opened.

Consumers should strive to save money, no matter how little it is, every month to prepare for any emergency that may arise such as unexpected bills or personal circumstances. You never know what’s around the corner and if you’re out of money you could be risking your house, your job and your personal life.