Consumers 'using savings' to become debt-free
Consumers 'using savings' to become debt-free
- Friday, 5 November 2010More consumers are tapping into their savings in order to become
debt-free and pay off their loans.
That is according to the ING Direct Consumer Savings Monitor for the third quarter, which was released on November 4th.
The study also found that 38 per cent of Brits are using their savings to pay household bills, while 31 per cent stretched their finances to fund their holidays.
Another 11 per cent found they had to tap into their savings to pay for their children's school uniform and items for school.
Mark Bower, managing director at moneymaxim.co.uk, a price comparison website, stated that people are adjusting their expenditures.
He said: "Recently more and more people seem to be adjusting their expenditure in light of higher taxes, and potentially lower take home pay.
"What is clear is that if we can't afford something today, it's fairly unlikely we will have more money in our pocket to make it more affordable next year."
This could mean that consumers will be more careful with their money in order to avoid
debt problems.

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