Consumers' debt management and saving plans to be hit hard
Consumers' debt management and saving plans to be hit hard
- Friday, 12 February 2010Maintaining
debt management and saving commitments is likely to be tough for consumers in 2010, it has been claimed.
Spokesperson for Moneyfacts.co.uk Darren Cook states that the first six weeks of the year have been "disastrous" for savers, and things were not likely to improve in the short term.
"The reason for this is that the costs of mortgages are steadily reducing and lenders can only compete with their mortgage rates at the expense of savers," he said.
"As long as the cost to borrowers keeps reducing, I don't see it getting much better for savers."
Mr Cook said improvements will only be seen when the Bank of England base rate returns to a "healthier" position of around three or four per cent.
During the first six weeks of 2010, savers have been faced with rising inflation, and the average rate of the top five savings accounts has decreased to just 2.89 per cent from 3.04 per cent at the turn of the year, according to moneysupermarket.com.

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