by Administrator
6. September 2010 12:10
The number of consumers who started to repay their debts, possibly through a
debt management plan, increased in the second quarter of this year.
According to unbiased.co.uk, Brits are repaying 7p of debt for every pound that they saved between April and June.
However, as consumers seem to be more concerned with repaying their debts, the amount of money they are saving has dropped.
Savings levels fell by £7 billion in the second quarter of the year compared to the first three months of 2010.
Jo Parsley, advocacy and media officer for Credit Action, believes that fears over job security may be causing consumers to practice effective
debt management and get on top of the money they owe.
She said: "Given that interest rates are still at a record low, and because many are still feeling concerned about their jobs, I wouldn't be surprised if consumers still opted to repay their debts."
Whether consumers are in debt or not, they still need to spend but must ensure they do so within their means, Ms Parsley added.
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