Thursday 21st of May 2009
Borrowers have been urged to pay down their debt before attempting to build up a savings pot.
Philip Stevenson, chartered financial planner at Ark Financial Planning, suggested that outstanding amounts should be given priority.
He explained that there is little point in paying 18 per cent interest on a credit card while earning just one per cent for a savings account.
And Mr Stevenson observed that consumers are attempting to avoid debt worries, stating: "I think we are in a position now where people are more concerned with paying off debt rather than saving."
Those who struggle to pay off credit cards and loans may wish to seek advice on debt management plans, which can allow borrowers to reduce their repayments to more affordable levels.
A recent survey by fairinvestment.co.uk revealed that 47 per cent of Britons have had to use savings to combat the credit crunch, with rising household bills among the factors creating problems.
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Women 'less confident than men about financial future'
