Consumers risking debt by not saving
According to figures from Nationwide, a quarter of consumers are not saving any money at all, headlinemoney.co.uk reports.
“With no savings to their name,” an IVA expert for the IVA Forum said, “consumers are clearly at risk of falling into debt if any unexpected costs arise.”
Nationwide said that ‘a reduction in the frequency of saving’ coupled with ‘more negative attitudes to current savings and the savings environment’, have left its ‘Savings Index’ down by four points.
The IVA expert continued: “Making regular contributions to a savings account can provide people with protection against debt should they come up against any unexpected costs – such as repair bills.
“However, partly due to the current economic climate, some people may not be able to save due to existing debts. We would recommend that anyone in this situation contacts a debt professional to discuss ways to repay their debts and get their finances back on track.”
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