- Friday, 16 April 2010Debt management could remain a pressing concern for many, whoever wins the election, with one financial expert claiming the new government will struggle to encourage people to save.
According to Jasmine Birtles, founder of consumer website Moneymagpie.com, all three parties would be "caught in a cleft stick" when it comes to interest rates. This means that they would likely be unable to move forward or retreat on the current rates.
A higher interest rate would encourage people to save; helping those struggling with debt, but it would make borrowing harder which could be detrimental to the weak economy.
"Savers have been sidelined, frankly over the last few years," said Ms Birtle.
"The higher the interest rates are, the worse it is for the economy-in the short-term, anyway."
She was responding to research by campaign group Save the Savers, which suggested that political parties were not clear in their manifestos about their intentions on saving and that the government should encourage people to keep their money rather than spend it.
People need to be educated in finance and the government should make it harder for consumers to borrow so they are forced to save rather than turning to their plastic or loans, Ms Birtle added.
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