Consumers are not saving which may be causing debt problems
Consumers are not saving which may be causing debt problems
- Thursday, 2 December 2010Consumers should try to save as overspending could lead to
debt problems.
However, with the rising cost of living many people cannot afford to save, suggests Richard Sorsky, a money advice co-ordinator at the UK Insolvency helpline.
He explained: "Everyone starts their first job and has every intention of saving, but the savings culture is getting diminished because it is just too expensive to save money.
"The internet is expensive and people are spending more money on travel - everyday living expenses have gone up so much now that often it's impossible to save."
Mr Sorsky also revealed that many people are living off of their debt as most people have a credit card that is used for everyday purchases and not just luxury goods.
According to research by myVoucherCodes.co.uk, 86 per cent state that they currently owe money in some way. This may include
credit card debt, loan repayments or an overdraft.
It was also found that 54 per cent believe they will always need financial help to fund their lifestyles.

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