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Trend in Paying off Debt Continues

As savings interest rates are the worst since 2006, people choose to repay debts first...

 

Crosshills, West Yorkshire -- (ReleaseWire) -- 09/28/2010 -- People are continuing to pay back debts before making any savings according to research from Markit UK's Household Finance Index. The research also found that lower levels of debt have been noted for the 8th consecutive month.

Additional research from Lloyds TSB confirms a peak in savings back in 2006, adding to the trend that perhaps traditional savers are choosing to deal with paying back debts first.

The record all time low Bank of England Base rate of 0.5 per cent combined with the rising cost of household bills and food has resulted in lower savings with the exception of anyone earning over £57,000 per annum.

Tim Moore, Economist at Markit said: "Concerns over pay and job security remains at the forefront of people's minds, while stubbornly high inflation and an impending VAT rise are becoming increasingly difficult to ignore."

"Those working in the public sector reported the greatest degree of pessimism, perhaps because of a sense of unease ahead of next month's government spending review.

"Households have responded to the uncertain outlook by paying down debt, reining in their appetite for unsecured credit and delaying major purchases."

Craig Gedey Marketing Manager at award winning Debt Management Company, Debt Advisory Line said: "An increase in the trend to pay back debts is an encouraging sign. With interest rates remaining at all time low levels this is by far the best option, even for people with lower levels of debt."

"At Debt Advisory Line we help people manage their debts by providing a detailed debt management solution based on individual financial circumstances so that it is tailored to each customers’ needs."

Visit http://www.debtadvisoryline.co.uk for more details.