Brits urged to put debt management before savings
Brits urged to put debt management before savings
Wednesday 18th March 2009
New research from fairinvestment.co.uk indicates that UK residents are becoming more careful with their cash in response to the recession, with 44 per cent of people claiming they would save rather than spend any spare money they had at the end of the month.
According to the survey, 26 per cent of people would use surplus cash to tackle their debts, while six per cent are likely to make overpayments on their mortgage.
While welcoming the savings trend as a positive development, fairinvestment.co.uk's financial planner Sharon Bratley said that Brits should ensure their debts are cleared before putting money away.
"Although having a financial cushion is wise, it is also wise for people to pay off any debts they have first, which are likely to be charging high interest rates, and then save any extra cash," she explained.
"Making overpayments on a mortgage, if allowed, would also be a smart move in the current financial climate."
The survey found that just ten per cent of people would spend their excess cash on 'luxuries' such as clothes and make-up, a figure which Ms Bratley described as "encouraging".
Another recent survey by fairinvestment.co.uk found that 22 per cent of UK people have been forced to cut back on charitable donations since the onset of the credit crunch.
Figures from Credit Action show that the country's average household debt is now £59,730 including mortgages.
News article brought to you by Debt1 - UK debt management specialists.
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