Debt problems defeating savings for one in four
Article Category: Debt Consolidation Help and Advice
A quarter of consumers are failing to save due to overwhelming debt problems, it has been revealed.
Figures published by Post Office show that 27 per cent of Britons cite personal debt as the main obstacle to increasing their savings.
The findings come as the institution celebrates the 145th anniversary of the first savings account being opened.
Just 2.1 per cent of post-tax earnings now go towards savings, according to the data - the lowest proportion since the post-war slump ended in 1959.
Post Office head of savings Richard Norman comments: “It is worrying to see we are now saving less than 40 years ago - as little as 21p in every £10.”
But with the base rate 1.25 per cent higher than its August 2006 level, the spokesperson adds that it is “a great opportunity for those who haven’t started saving yet” to see a good return on their funds.
The findings mirror research from MoneyExpert which recently showed that a quarter of Britons have seen their debt problem worsen due to increased interest rates.
A debt consolidation loan could be one way to reduce monthly repayments to an affordable level.
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