UK 'a nation of debt managers'
UK 'a nation of debt managers'
- Wednesday, 3 June 2009National debt management efforts are intensifying as households move away from paying into their savings accounts, it has been pointed out.
Brian Morris, head of savings policy at the Building Societies Association (BSA), claims that more Britons are taking on the role of
debt managers in order to make the most of the money coming in.
This is due to the historically low base rate - and the low interest rates that are available on savings as a result.
"In the current low interest rate environment there is evidence that households are looking to repay debt rather than save," Mr Morris explains.
As a result, in April, building societies witnessed a net withdrawal of £811 million in funds, much of which could have been put towards
national debt management efforts.
Mr Morris predicts that, not including the payment of interest into accounts by the building societies, the full-year figures for 2009 could also ultimately show a net withdrawal from savings.
A recent BSA survey found that the majority of building societies' chief executive officers believe the base rate will remain at 0.5 per cent throughout 2009.
Should the base rate continue at its present level, more budding
debt managers could look to their savings as a way of clearing more of what they owe.

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