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


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

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

It’s looking to be a credit Christmas

We are now less than 70 days away from Christmas, and with 70% of people admitting they haven’t started saving yet, millions will be needing to play catch-up - and plenty planning to turn to credit for some Christmas spending relief.

Can no credit score be as damaging as a bad one?

Debt is becoming an increasing problem, which is why those who have no credit commitments often feel pretty smug about it. However, while not relying on credit is admirable, having no credit score can actually be just as damaging as having a bad one.

Know your credit score – key to better borrowing

We all know how important it is to be credit savvy. It’s the only way to make credit work, which is why it’s so concerning that so few people know their credit score – and some don’t even know how much they’re borrowing.