Bank savings make debt solutions harder

Britain's consumers are missing out on as much as £12 billion a year – which could go towards debt solutions – because banks are keeping quiet about the fact they provide low rates of saving.

Consumer body Which? has said that around half of all savings accounts in the UK today, which pay interest to customers, offer just 0.5 per cent or less.

A quarter are said to pay just 0.1 per cent interest – meaning greater difficulty for those trying to make ends meet throughout an IVA.

Which? found in their study that banks do not advertise rates or tell customers of changes to their interest.

According to a recent NS&I Savings Survey, Britons are on average saving £85.21 each month.

Britons' failure to save is said to be a key reason for why so many are falling into a debt spiral, as loss of income and poor debt management mean saving levels have fallen since the onset of the recession.

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