Brits 'should target reducing their borrowings'

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Brits 'should target reducing their borrowings'

Wed 28th Sep 2011

Bringing down borrowings should be the aim for many Brits at present, although building up a nest egg should also be a priority, it has been claimed.

Mark Bower, managing director of moneymaxim.co.uk, said it is important for people across the UK to remember the present low level of interest that is being charged on borrowings and therefore it is in their best interest to pay down their debts as much as they can before the rates rise.

He commented: "Having said that we always recommend all households retain a reasonable buffer in terms of easily accessible savings to protect them against any short-term change in their circumstances."

However, Mr Bower added that the interest being offered on savings is extremely low at the moment and this could therefore make paying down debts the smarter option.

Meanwhile, Ed Bowsher, head of consumer finance at lovemoney.com, recently claimed many Brits went on a borrowing binge in the decade running up to the economic downturn and this is causing a major hangover in terms of their finances at present.

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