Savers could increase debt management needs for others
Savers could increase debt management needs for others
Monday 19th October 2009
That is according to Fool.co.uk, which has suggested that as a result of people being more frugal with their money, UK growth will be slower than if people maintained a higher level of spending.
A slower rate of recovery could result in an increase in the number of people seeking debt management help as they continue to struggle with the effects of an economy in downturn.
Director of personal finance website Fool.co.uk David Kuo said that a lack of high street activity could have a detrimental knock-on effect on the rest of the economy.
He said: "Two thirds of the UK economy depends on people going out spending money; it relies on people going out to restaurants, people going out to buy things on the high street.
"If people are saving money rather than spending it, then it can have the opposite effect, and can prolong the recession itself."
Mr Kuo was reacting to recent news from Nationwide that more people were now saving.
According to the Nationwide Savings Index, UK savings levels have reached their highest point since November of last year.
Furthermore, the Future Savings Index revealed that more people than ever before believe that their savings will increase in six months' time.
Those people that are unable to save or concerned about the effects of a prolonged recession on their finances could speak to a debt management advisor.
News article brought to you by Debt1 – UK debt management specialists
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