AA savings highlights belt-tightening

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AA savings highlights belt-tightening

The economic climate is causing people to cut back in a lot of areas and this shows the importance of getting a good return on savings, according to AA Financial Services.

Mark Huggins, director of the firm, pointed out that driving can account for a significant portion of a household's monthly budget and it looks likely to rise.

Research by the AA shows that 29 per cent of people are attempting to use their car less, as well as making savings in other areas, such as dining in restaurants and taking their vehicle to the car wash.

He remarked: "Putting money into a high-earning account means while you're working hard to make savings, your savings are working too."

Last week, Mr Huggins revealed that AA's credit card customers will see a change to the way their payments are allocated from September 1st, with the highest interest debts being paid off first and zero per cent interest transactions left until last.

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