A new survey shows that almost half of the Irish public would need to access some form of credit to cover the cost of a sudden but essential €3,000 bill.
The survey by Peopl Insurance found that almost half of respondents would not have the cash to hand or available within a month to pay this essential bill, with a third needing to borrow.
9% of those surveyed would also not be able to get the money together at all to cover a large essential bill.
The survey asked people how they would get the money together for a crucial bill of €3,000 that had to be paid within 30 days.
This international standard is an approach used to assess the "financial resilience" of consumers and households.
The survey found that the public is almost split down the middle when it comes to their ability to withstand a financial shock.
55% said they would have enough savings to cover the cost with the remaining 45% having to resort to credit or other means.
More than one in four of those on incomes of less than €20,000 would either have to go into arrears on their mortgage or other major bills - or would simply not be able to access the money.
Credit unions were the most popular choice of lender for those faced with an unexpected large bill, with 18% saying they would borrow the money from their credit union.
9% said they would borrow from family or friends while 3% said they would have to borrow the money from their bank, while the same number of people said they would resort to a moneylender.
Today's survey also reveals that men were more likely than women to have enough savings in the wings to cover an unexpected €3,000 bill, with 60% of men drawing from their savings to cover such a bill compared to 49% of women.
Women were also more likely than men to say they would not be able to get the money together for a large but essential bill - 12% of women compared to 7% of men.
Paul Walsh, CEO of Peopl Insurance, said the findings paint a worrying picture of the financial vulnerability of a large part of the Irish public at a time when rising living costs are squeezing so many households across the country - and as concerns mount that Ireland could be on the verge of another severe recession.
"With only half of households having access to some financial cushion, it is a stark reality that many people simply do not have a financial cushion to fall back on. Thankfully, over half of those that need to borrow would rely upon a credit union for financial help," he said.
