Debt Help News: Saving levels dropped in December

Consumers ditched their saving habits in December as the rush for Christmas gifts took hold.

That's according to the latest Nationwide Savings Index, which found that one quarter of people are not putting any money away at present.

Savings are an important way of funding large purchases rather than increasing debt levels. Despite this, the building society found that less than half of consumers save regularly.

This took the number of regular savers to its lowest point since the index began in May 2008 – a cause for concern, particularly with the prospect of tax increases and further job losses in the coming year.

Kevin Still, director at Atlantic, said that,"in the current financial climate, the low number of savers is to be expected".

Many households are without surplus income to regularly save for anything other than annual expenditure items like car services or repairs.

Mr Still added, however, that he expects many people to have followed sound debt management advice in budgeting for Christmas, leading to a "natural outflow" of savings in December.

Debt problems – payday loans

15/03/2011

Once again British consumers struggling against debt problems have been told to avoid resorting to t ...

Debt problems: Interest rate threat

14/03/2011

An increase in interest rates could plunge hundreds of thousands of households into debt problems. < ...

Debt problems: borrow to pay debts?

08/03/2011

People thinking about borrowing money in a bid to alleviate their debt problems have been told only ...

Debt problems – pay off debt

07/03/2011

People with debt problems currently considering the best ways to deal with them, might be interested ...