Credit card debt 'prompting Brits to save' - Credit cards - News - Moneyfacts

News

Credit card debt 'prompting Brits to save'

Credit card debt 'prompting Brits to save'

Category: Credit cards

Updated: 06/03/2009
First Published: 06/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers are increasingly choosing to save their money rather than spend, a poll has revealed.

According to research conducted by Legal & General, credit card debt resulting from Christmas expenditure is one of the main factors prompting people to keep hold of cash, with 21 per cent paying this off.

But with unemployment rising across the country, 29 per cent of all savers told the financial services firm that they are doing so to protect against the possibility that they could lose their job.

Overall, the proportion of respondents in the mood to save neared two-thirds, while less than a quarter prefer to spend and the remainder are unsure of their plans.

Wealth policy director at Legal & General Adrian Boulding remarked: "Investing for a rainy day has never been more important than now. We are encouraged to see our MoneyMood survey reflecting a more prudent attitude to credit card debt in these straightened times."

This week Abbey encouraged consumers to switch to its new zero per cent balance credit card, which offers the rate on transfers for 15 months.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Top credit cards for Christmas spending

‘Tis (just about) the season to be jolly, but before all that festive fun begins, chances are you’ve got a bit more shopping to do. But, if you’re turning to credit to fund things, you’ll want to use cards that offer 0% interest deals on purchases.

Spooky reality of high balance transfer fees

Credit card debt is scary at any time of year. While most might assume that opting for the longest deal on offer would save them the most, our data shows some of the longest deals can actually work out to be the most expensive.

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…
 
Close