Savings Given a Boost
Brits are making a concerted effort to save more, research from the first quarter of 2011 shows.
As many Brits struggle to afford the high cost of living, and others remain concerned over their employment prospects, a rainy day fund has never been more important.
The research by unbiased revealed a notable rise in the level of money being saved in the first quarter of the year, and this is the highest increase since the second quarter of 2009.
The figures reveal the rate of paying back debts has slowed from a year ago.
“It is extremely encouraging to see the level of savings increase at the start of this year and it’s certainly an interesting turnaround from the previous quarter,” said Karen Barrett, unbiased chief executive.
“It seems that a rainy day fund is proving more essential now than it has even been – with rising inflation, a looming interest rate rise and more job losses it’s no surprise that people are concerned and comforted by having cash to hand and accessible.”
Debt repayments also still outweigh current borrowings which were first seen back in the third quarter of 2008 – however the amount the nation is paying back on debts is the lowest since the third quarter of 2009.
Research by R3 Insolvency Body however revealed those in debt are still struggling if not more so due to the high cost of living.
Their research shows eight million Brits are due to go into their overdraft this month and a further six million are currently behind with some of their bills and payments.
Those who are still struggling to manage their debts and are also not able to put savings aside for a rainy day may benefit from a free prepaid card which can prevent overspending each month.