Consumers trying to become debt-free rather than saving
Consumers trying to become debt-free rather than saving
- Tuesday, 2 November 2010Consumers are more likely to try to become
debt-free instead of saving as the interest rates are so low.
That is according to a spokeswoman for moneyfacts.co.uk, which aims to provide accurate and independent financial advice in an accessible format.
She said: "A lot of people are realising that people are still losing their jobs … and credit is not as easy to come by as well.
"Saving rates are so low so there's not really that much incentive for people to save, so they are choosing instead to pay off their higher borrowing debts where rates are a lot higher."
This may suggest that consumers are trying to clear their
debt problems as these can cost more in the long-term due to interest.
The spokeswoman made these comments after the Bank of England revealed on October 29th that total net lending to individuals increased by £0.4 billion in September, showing that borrowing trends remain weak.
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