RUNCORN, England — Everyone knows it's more fun to spend than it is to save. Across the UK individuals are putting more of their daily expenses on plastic and running up higher debt loads financing their lifestyles on borrowed money. This 'live for today' attitude has not only contributed to record debt levels but has also been a factor in millions of people being unprepared for basic financial emergencies.

"A lack of savings by people in the UK means that any emergency expenses such as car repairs or a leaky roof can cause a catastrophic financial event," said Steve Rhode, chairman of Myvesta UK, a not-for-profit financial crisis centre. "Without even a few hundred pounds available to pay for those inevitable expenses that always pop up, individuals will be forced to increase their indebtedness and to turn to credit cards to make ends meet."

Rhode said that as people are forced to turn to credit cards to cover emergency expenses, those individuals are more likely to suffer consequences from over limit and late fees.

"Many people are quite close to the limits on their credit cards and being forced to charge an emergency expense could trigger large fees from their credit card issuers," Mr Rhode said. "That's the last thing a person needs when already faced with bills they can't pay."

Rhode also recommends individuals who are already facing high debt loads to develop a savings plan while they are paying off their debt.

"People assume that they can't build savings as they pay down debt," he said. "Not only is it important to pay off debt, but it's also important to put money into a savings account for emergencies. Otherwise all that hard work you've done to reduce your debt load will be wiped out if you have to charge unexpected expenses."