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Pay off debts before you save, says expert
It is more important to pay off debts that come with high interest rates before consumers think about opening a savings account which have low interest rates, one expert has suggested.
David Rodger, managing director of the Debt Advice Foundation, said that Britons could also think about creating a balance between the two.
"At a time of significant economic uncertainty and with the threat of rising levels of unemployment, there is an argument for increasing savings to make sure that that you are well prepared should the worst happen," he said.
Research from unbiased.co.uk recently revealed that savings levels are soaring while the rate of paying back debt slowed at the start of the year. However, people in high levels of debt could be refused credit in the future.
Mr Rodger explained that putting away money for unexpected events like replacing a broken-down washing machine or for peak spending times like Christmas can help prevent people from going into the red and getting further into debt.
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David Rodger, managing director of the Debt Advice Foundation, said that Britons could also think about creating a balance between the two.
"At a time of significant economic uncertainty and with the threat of rising levels of unemployment, there is an argument for increasing savings to make sure that that you are well prepared should the worst happen," he said.
Research from unbiased.co.uk recently revealed that savings levels are soaring while the rate of paying back debt slowed at the start of the year. However, people in high levels of debt could be refused credit in the future.
Mr Rodger explained that putting away money for unexpected events like replacing a broken-down washing machine or for peak spending times like Christmas can help prevent people from going into the red and getting further into debt.
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Published: 13/06/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.