Cost of Living: Survey finds over one million Londoners have no savings

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Over one million Londoners have less than £100 in savings according to money survey.

Over a million people across London have less than £100 in savings, according to new research from the Money and Pensions Service (MaPS).

The survey which was carried out for Talk Money Week (November 7 to 11) found that 11% of Londoners had nothing put away, while 9% had £100 or less in savings.

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“This leaves a fifth of Londoners living without a financial safety net to cope with the rising cost of living or unexpected bills, meaning some may have to use credit,” statutory body MaPS said.

Over one million Londoners have savings of less than £100 according to a survey.Over one million Londoners have savings of less than £100 according to a survey.
Over one million Londoners have savings of less than £100 according to a survey. | AFP via Getty Images

MaPS says although credit is an important tool when used and managed well, it’s crucial that people understand what they can afford and have a plan to pay it off.

However, the figures also reveal that many people are already finding this difficult.

Among the 77% of London residents who use credit, more than half (53%) are now anxious about how much they owe.

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Two in five (44%) are worried about the number of different products they have.

As cost of living pressures start to hit home, MaPS says it’s more important than ever to talk about money before problems set in.

However, the survey also reveals that 74% of people still avoid discussing their finances, with reasons being shame or embarrassment, fear of burdening others and not wanting to be judged.

Caroline Siarkiewicz, chief executive of the Money and Pensions Service, said:  “Over a million people across London find it a challenge to save and this leaves them vulnerable when sudden expenditure items arise.

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“When you add in the anxiety that they feel with their credit commitments, the weight of that worry can quickly become overwhelming.

“This Talk Money Week, we want everyone to start the conversation with family or friends and share the burden of any money worries.

“By dealing with the problem head on, people can discover just how helpful free debt advice can be and see the importance of talking to their creditors early.

“They can also begin to find a way forward, no matter how difficult their situation might feel.”

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LondonWorld and NationalWorld will be highlighting the cost of living crisis and its impact on our city in a series of articles over the coming weeks.

We will be calling on our leaders - in politics, business, and our communities - to step up for our city.

And we want to hear from you, our readers, about your own experiences. How are rising energy bills, fuel costs and food prices affecting your daily life?

What worries you about the prospect of the winter ahead? And - crucially - where can the government help?

How is the cost of living crisis in London affecting you? Contact London World and speak to one of our reporters in confidence on [email protected] or via Twitter or Facebook.

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