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News: UFOs seen all over Britain

Every year over half the UK population (60%) suffer unforeseen financial occurrences (UFOs), such as their boiler breaking down, which leaves a serious dent in their personal finances.

Yet only 20% of people are able to use their savings to pay for UFOs, new research from Lloyds TSB Personal Loans has found.

Over half of those surveyed estimated that they spend between £200 and £600 on UFOs annually, with one in ten saying they have had to fork out over £900.

The most common ways that people say they pay for UFOs are:

  • 5 out of 10 use their credit card
  • 2 out of 10 use their savings
  • 1 in 10 have enough in their current account to cover the cost
  • 1 in 10 resort to borrowing the money from their partner or family

To help customers manage annoying UFOs, Lloyds TSB now gives customers the option to ask for a one month break from making their loan repayments at a time that suits them.

Jason Nichols, Lloyds TSB consumer lending manager said: "It’s an unfortunate fact of life that every now and again we all suffer from unforeseen financial occurrences."

"When our customers experience a UFO they want the ability to be able to choose what is the best way for them to pay for it, taking into account their financial situation at that time."

"Our research shows 75% of our customers would like to have the option of a loan repayment holiday to help pay for UFOs and 69% say it would help them to manage their money better."

The most common UFOs are:

  • Between £1,000 and £2,000 for a new boiler
  • Up to £1,000 for unexpected car repairs
  • Circa £500 for emergency household repairs such as plumbing
  • Circa £500 to replace a TV and CD players that break
  • Anything from £100 to £1,000 on emergency dental treatment

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