Consumers use spare cash to pay off debts amid crisis fears
SCARED consumers have eased off on saving and are redoubling their efforts to pay down debts as they fear for their financial futures, a new survey has found.
The increased negativity towards the saving environment and an increasing tendency to pay down debt rather than save surplus cash was picked up in the latest Nationwide UK (Ireland) savings index.
A majority of people said in September they are using spare cash to pay off debt.
The index, which is put together in conjunction with the Government-supported thinktank the Economic and Social Research Institute, found a fall in the number of people who believe now is a good time to save.
Despite having a more negative outlook on savings, there was a small rise in the savings index, which shows some are saving more.
Managing director of Nationwide UK (Ireland) Brendan Synnott said: “Savers are very aware of the returns they are getting for their deposits and following a recent further decline in savings interest rates, we are now seeing an increase in the proportion of people who will use spare funds to pay down debt rather than choosing to save.”