Debt management 'to drive savings growth'
Debt management 'to drive savings growth'
- Thursday, 18 June 2009UK debt management efforts are expected to contribute towards the balance of savings versus amounts owed in the coming months.
Financial services provider Nationwide explains that the low interest rate environment is reducing the tendency for people to top up their savings.
Head of savings Andy Hutchinson says: "The low level of interest rates may have increased the incentive to prioritise debt reduction over deposit accumulation."
As well as raising the attractiveness of
debt management, he notes that the current economic situation is having a direct impact on the amount people can save as unemployment figures increase and real-terms incomes decline.
Despite this, 60 per cent of consumers surveyed by Nationwide said that they still believe that saving is important.
But Mr Hutchinson adds: "Initially, increased saving is likely to occur mostly in the form of debt reduction."
While Nationwide cites unemployment as having an impact on
UK debt management trends, a recent survey from the organisation showed consumer confidence in the jobs market is improving.
In May, 22 per cent of those canvassed predicted that job availability will increase over the coming six months.

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