Debt management could be sought on the back of low savings

Tuesday 12th January 2010

Debt management solutions may be needed by the increasing number of consumers who are choosing not to save.

New figures from Nationwide reveal that the Savings Index for December decreased by four points, driven by a reduction in the frequency of saving and the negative attitude that people hold towards the current economic environment.

The Index is back down at a similar level to 12 months ago, after experiencing relatively strong figures in the previous three months.

Only 45 per cent of consumers are said to save regularly, and a quarter of consumers are not saving at all. The report indicates that Christmas shopping and the VAT increase are factors likely to be driving the trend.

Head of savings at Nationwide Andy Hutchinson said the number of people who are making regular savings contributions is at its lowest point since the Index began in May 2008.

"On the other hand, this could be because of seasonal fluctuations and we mustn't forget that the base rate is lower now than it was 12 months ago," he said.

"Nevertheless, it's still worrying that a quarter of us are not saving any money at all."

It was now important that consumers reverted back to the habit of saving after their period of festive spending, said Mr Hutchinson.

"We know that December can be an expensive month for families, so I would encourage them to get back into a savings habit as quickly as possible in January 2010," he said.

Consumer finance expert Ed Bowsher recently anticipated that the coming year will not be promising for savers, primarily due to the expected fate of the Bank of England base rate.

News article brought to you by Debt1 – UK debt management specialists

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