Brits urged to 'tackle debt now'
Brits urged to 'tackle debt now'
Friday 16th January 2009
David Kuo, head of personal finance at fool.co.uk, said that people who put money in a savings account while trying to pay off debts at the same time are not making the best use of their money.
Instead, they should make tackling debts their top priority and consider savings only when they have become debt-free.
"Most people out there will be carrying some form of debt, whether it is an overhang from Christmas spending or whether it is a car loan, a personal loan or a mortgage," Mr Kuo explained.
"The best idea is to pay down debt right now."
Mr Kuo said that many people are likely to be paying a higher rate of interest on their debts than they receive for their savings account, thereby making it "almost worthless".
According to a recent survey from moneyexpert.com, the number of instant access saving accounts offered by banks has decreased by 23 per cent in the last 12 months.
News article brought to you by Debt1 - UK debt management specialists.
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