Brits using savings to pay off debts, survey shows

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Brits using savings to pay off debts, survey shows

Thu 4th Dec 2008

A new survey has shown that people in the UK are paying off their debts as the reality of the credit crunch becomes increasingly apparent.

However the survey also reveals that increasing numbers of Brits are using up their savings to make the payments.

The study, conducted by Unbiased.co.uk, shows that Brits paid back a total of £23 billion in debts in the third quarter of this year, which is significantly more than they borrowed over the same period.

However the total amount stashed in savings accounts by people in the UK fell by £19 billion over the same period.

David Elms, chief executive of Unbiased.co.uk, said: "Britons appear to have taken drastic actions in an attempt to reduce their debt levels.

He added: "For the first time in our research the nation has actually focused on paying off debt rather than accumulating more"

Last month a survey conducted by Just Retirement revealed that many people will still be in debt when they reach retirement age.

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