One in four ‘raid savings to clear debt’
Article Category: Debt Management Help and Advice
A quarter of Britons are turning to their savings accounts to clear debt they had not expected, it has emerged.
Research from Birmingham Midshires notes a 14 per cent increase in the amount taken out of savings accounts over the past quarter, when compared with the last three months of 2006.
Overspending is cited as the most frequent cause as consumers look to clear debts which have accumulated on their current account.
An average of 25 per cent across all age groups gave this as the reason for raiding their savings - while the figure grew to 37 per cent of 25 to 34-year-olds.
The over-55s were least likely to overspend - but most likely to face emergency repair bills to their house or car, with 23 per cent giving this as a reason for needing extra funds.
Previous research from Birmingham Midshires concluded that 55 is the age at which Britons are most likely to clear debt owed on mortgages.
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