Wednesday 21 February 2018

More savers to raid piggy bank for their holiday

Charlie Weston Personal Finance Editor

MORE people are set to dip into their savings to fund their annual holidays. Some 14pc of adults have admitted raiding their piggy banks to fund their getaway, a survey commissioned by EBS shows.

The main reason people take money from their savings accounts is to pay for day-to-day expenses, with paying for a holiday now the second highest reason.

And so cash-strapped are people that there has been a slight increase in the numbers falling back on their credit cards to pay for their vacation.

Almost one in 10 is now resorting to their plastic cards to pay for their summer break, the EBS survey shows.

Consumers are continuing to save hard despite having little money to spare.

The average amount being put aside is around €3,500 a year, or €290 a month. This is well down from 2008, before the downturn hit. Eight out of 10 claim to be saving.

And another survey shows that six out of 10 people no longer go out for dinner because of a shortage of cash.

A Newstalk Nation survey of over 900 listeners has found that people are now going without a variety of luxury products/services because of financial pressure on their household budgets.

More than half of those who responded to the survey said they have forsaken foreign holidays.

Others have given up their gym membership.

Some of the other products and services people have chosen to go without include trips to the cinema (32pc), cosmetic products (29pc) and cable TV (16pc).

The Newstalk Nation survey also found that more than three-quarters of households have less income now than this time a year ago.

More than 30pc of those surveyed still fear that they will lose their job with a similar number fearful that tax increases are on the way.

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