business & economy

Unexpected Expenses Sink Finances

Nearly one in four Swedish households would suffer significant consequences in family finances if faced with an unexpected expense of 600 US dollars, a survey by an insurance cooperative reveals.

Thirty-four percent of Swedes would have trouble paying out an unforeseen expense of 1,200 dollars, and nearly half of all surveyed said they could not weather a surprise 2,500 dollars.

Ingela Gabrielsson at Nordea bank emphasizes the importance of having a buffer of at least two to three monthly salaries in case of financial distress. “Happy-go-lucky” consumption and risky spending habits lay behind the bleak figures, she told news agency TT on Wednesday.