Financial Problems When Making a personal injury claim
Brits with no savings
Recent research from Lloyds Bank has shown just how serious this problem is. Its Saving Index for the third fiscal quarter of 2013 has shown that while 84% of people think it is important to save money regularly, and while 88% of people agree that it is important to have enough money to cope with an unexpected change of circumstances - such as prolonged workplace absence due to a personal injury - very few people have actually put enough money aside for this purpose.
A total of 36% of respondents admitted they have less than one month's income saved so far, indicating that a change in circumstances could cause catastrophe for over one-third of the UK populace. Furthermore, the squeeze on incomes is leading to savings problems for over a quarter of the UK, with 27% saying they expect to reduce their savings or stop saving altogether in the next year.
The problem is particularly acute among people between the ages of 25 and 40, among whom 40% have the equivalent of less than one month's income saved up. It is also more commonplace among people in the North East, Humberside and Yorkshire, with this figure also 40% among all respondents from this area. Furthermore, 15% of people said they do not know what their savings currently are, and only 24% of people are regularly able to make savings throughout the year.
People just don't have enough income to make any significant savings, with 43% of non-savers saying they haven't done so because they don't have any money left from their paycheque at the end of the month.
Dangers of no savings in personal injury claims
If someone has no savings, then a personal injury could be devastating for them. It only takes one accident at work for someone to find they are no longer able to continue in their previous line of employment, which can cause their income to drop off to almost nothing. Injuries can also be very expensive to treat, with rehabilitation and prescription costs frequently reaching very high figures, especially when people require private treatment.
Although making a personal injury claim allows people to recover these losses, compensation claims can take a long time to reach completion, and are not always successful. No win no fee solicitors may be able to offer people cash advances or other financial assistance to get them through the rough patches, and can offer their services for free, but nothing comes close to personal savings when people need to get through rough patches.