Savings decline as Brits pay off debt

Savings levels have dropped in Britain as Brits rush to pay off their debts, according to research by unbiased.co.uk.

The latest figures show that the amount of savings in Britain has declined quickly in 2010, a trend last seen in the final quarter of 2008.

Figures show that for the first time since 2008 British people are paying off more than they are borrowing which has impacted on the level of savings.

Research revealed that Brits paid repaid £1 billion in the second quarter of 2010 resulting in savings dropping by nearly £8 billion as people rushed to pay off debt.

For those in a position to save money Karen Barrett, chief executive of unbiased.co.uk, advised: "It is important to ensure you are doing whatever you can to make your savings work hard - especially as interest rates remain static."

She added that it is important to seek advice and shop around for the best possible savings interest rates.

Earlier this week Santander announced it would be increasing its savings interest rates by 0.25 per cent across its tracker bond range.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

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2010-09-03 11:59:22 © Moneyextra.com