Over half want saving incentives

More than half (52 per cent) of British adults want the next Government – of whatever colour – to give them greater incentives to save.

Campaign group Save Our Savings want measures introduced like tax breaks, to help encourage a saving culture.

The move comes after Bank of England figures show that homeowners are conscientiously paying off their mortgage debt.

£4bn was paid off between October and December last year in equity, which is thought to be a result of the low interest rates.

Figures last week from the British Bankers Association (BBA) revealed that consumers were risking financial problems by taking out £1.3bn in new loans.

Kevin Still at Atlantic Financial Management says: "For those with surplus disposable income then paying off mortgage or credit card debt can be very sensible, especially if there is an expectation that rates on credit card debts will continue to rise, with the potential for mortgage interest rates to follow.

"Unfortunately it is more likely to be the people without surplus income that are having to borrow more" he says "when some should be looking at non-borrowing debt solutions like a Debt Management Plan (DMP)."

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