Research shows one in five UK adults would rely on borrowing to cover an unexpected £250 expense

London, England, United Kingdom, November 3, 2026 -- Cashfloat, a UK-based direct lender providing borrowing options for unexpected expenses, is highlighting the financial pressures that even relatively small unplanned-for expenses can create for households. This follows research revealing that 21% of adults would need to take out borrowing or credit to cover an emergency £250 bill.

The findings, published by Standard Life as part of its Retirement Voice 2025 research, also show that 5% of adults would be unable to pay this expense at all, emphasising the difficulties families without accessible savings face when they need to manage unexpected costs.

Why UK Families Are Struggling to Manage Modest Additional Expenses

Chief Operating Officer Peter Kimpton from Cashfloat explains, ‘Unexpected outgoings don’t necessarily need to be large to put a household in difficulty if their income is already committed to essential bills. Understanding what is affordable, planning for occasional costs where possible, and knowing how to find reliable financial guidance can all help consumers make better-informed decisions when their circumstances change.’

The research, which involved 6,000 adult participants, found that, in addition to the headline outcomes:

• 13% of respondents would use a credit card to cover a £250 expense
• 4% would borrow from friends or family
• 1% would expect to use a personal loan
• Another 1% would apply to a payday lender

Data also points to wider concerns, with 23% of participants saying they were finding it difficult to manage on their current income. 30% cited inflation and rising prices as concerns, and 28% commented on rising household energy costs.

For those already trying to balance income against committed outgoings, unexpected bills can therefore leave them without the room to adjust their spending. Without any savings buffer, consumers may feel that borrowing is their only option, even if additional repayments could put their budgets under more pressure.

How Households May Be Able to Improve Their Financial Resilience

Cashfloat has encouraged consumers to take stock of their existing financial position before making decisions about borrowing, and to consider how sustainable repayments would be before applying for a loan. Practical steps that may be useful in helping households prepare for unexpected costs include:

• Reviewing budgets, separating essentials, regular repayments and everyday spending
• Building savings gradually as finances allow
• Comparing borrowing options, including the total repayable, interest charges and fees
• Seeking help when needed from debt advisory organisations

Although building significant savings can be difficult for households living month to month, establishing a small contingency fund can be a beneficial starting point.

Regularly reviewing household expenditure may also reveal opportunities to cut costs, such as comparing insurance renewal premiums, deciding whether subscriptions are necessary and checking utility tariffs between providers.

Guidance for Households Dealing with Micro Financial Emergencies

For consumers who do need to consider borrowing to manage an urgent, unexpected expense, the priority should be on understanding the commitment they are making, rather than picking a lender or product based only on how quickly funds might become available.

Short-term credit can prove a solution for some unexpected expenses but may not be suitable for every situation or household, especially where income is already insufficient to cover essential outgoings, or families are repeatedly applying for more credit.

Peter adds, ‘Financial resilience doesn’t look the same between every household. The important aspect is to have control over your own budget, consider all of the options available to you, and avoid taking on repayments that could make an already tricky financial situation harder to manage.

The findings from this report underline how essential financial awareness, realistic budgeting and guidance are for consumers handling unexpected costs. While it might be impossible to forecast every expense, taking steps to improve financial resilience can help to reduce reliance on borrowing when something urgent arises.’

About the company: Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by The Financial Conduct Authority. Cashfloat is a trading style of Western Circle Limited - Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority. FCA full permission license: 714479. ICO Registration Number: Z3305234

Contact Info:
Name: Ofer Valencio Akerman
Email: Send Email
Organization: Cashfloat
Website: https://www.cashfloat.co.uk/

Release ID: 89208346

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