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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 It is now over 6 months old so the content may be out of date.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.

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