Swedes teeter on financial brink
Paul O'Mahony · 11 Dec 2006, 16:48
Published: 11 Dec 2006 16:48 GMT+01:00
Many Swedes live their lives on very tight budgets, according to a study carried out by insurance company Länsförsäkringar.
"A surprising number of people have excessively small margins in their private finances," said economist Elisabeth Hedmark in a press release.
"Anybody who becomes unemployed or is out of work sick for a long period may have major difficulties making ends meet.
"For a family with children it is enough for one parent to become unemployed," said Hedmark.
If income were to drop by 5,000 kronor per month, a full three quarters of Swedes would be forced to look for less expensive lodgings.
"All in all we see that far too many people have margins that are far too small in their private finances.
"Forthcoming interest rate increases and sudden changes would cause major difficulties for a lot of people," said Hedmark.
The company advises people to work out a budget on a monthly basis for the coming year.
Home-owners with shallow pockets and variable interest rates should consider changing to a fixed rate.
And in keeping with with age-old traditions, Länsförsäkringer also reminds people that it may be prudent to stow some funds away for a rainy day.