5m households failing to save enough

More than five million households in the UK are failing to access the best interest savings rates to create a nest egg for the future, it has been claimed.

Leading debt charity the Consumer Credit Counselling Service CCCS has said it is concerned by the lack of savings held by a number of UK households.

New research commissioned for the charity by the Financial Inclusion Centre has found 4.3 million households have no savings and 1.1 million households have savings under £1,000.

The charity noted that households without adequate savings are likely to rely on credit to cover unexpected expenses.

Delroy Corinaldi, CCCS external affairs director, says: "Low savings leave many families financially vulnerable and unable to deal with unexpected expenses without resorting to credit."

The CCCS believes that the situation will get worse as high inflation, welfare benefit and tax changes, as well as wage freezes, will leave more people unable to save.

People trying to build up savings in accounts with the best savings interest rates were recently urged to shop around for utility deals.
 

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2011-08-12 15:07:46 © Moneyextra.com