Debt stops savings growth

Friday, November 18, 2005

Over 25 million people in the UK do not bolster their savings on a regular basis due to debt from a loan, credit card or other source, according to new research.

Britannia, the building society, has found that 55 per cent do not contribute to their savings accounts regularly, whilst 24 per cent say they have no savings at all due to personal debt, such as credit card repayments.

"Many people are obviously finding it hard to save due to the high cost of living and the culture of debt that has been growing in the UK over the past ten years," said Neville Richardson, chief executive of Britannia.

"Recent research showed that 77 per cent of 16-18 year olds had a savings account, suggesting that people are losing either the desire or the ability to keep saving as they get older."

The building society says that the lack of people making regular deposits into savings accounts is a worrying sign, with nothing set aside for an emergency.

It also said that people who do have savings can use different savings accounts for different goals: "Many savings providers offer tailor-made accounts for different savings goals and that way you can make sure your money is working hard for you," said Mr Richardson.

Earlier this week, Cooperative Insurance Services (CIS) announced the UK savings gap now stood at £27 billion.

Get some help finding the right savings account here:
http://www.europinions-finance.co.uk/savings/savings/
track