Scottish Savings Forgotten In Battle Against Debt
Author: Abbi Rouse

With the cost of living rising and the availability of
credit withering at an alarming rate, many Scots have
prioritised keeping their finances protected against rising
debt in the battle with the crunch.

Such is the claim of Lloyds TSB, which explained that while
many consumers have attempted to slay their debt demons,
savings efforts have dwindled substantially. According to a
study conducted by the group, more than two-fifths (41 per
cent) are now saving less than they were six months ago,
with 36 per cent of people saying they had concentrated on
clearing debt as inflation has risen and fears of recession
have circulated. Indeed, the bank notes that while the
current economic crisis may put a forced end to the buy
now, pay later culture which has pervaded Britain, it seems
that many people north of the border have struggled to put
more of their money aside. More than a fifth (21 per cent)
said that they currently have less than 500 pounds in their
savings. So too, residents throughout the UK were found to
have struggled to stash the cash as the financial climate
has grown ever more inimical.

On average, 37 per cent of consumers throughout the UK are
now saving less than they used to, with this proportion
rising to 43 per cent in the 45 to 54 age group. However,
younger generations were said to have bucked the trend,
with nearly a third (32 per cent) of under-25s currently
saving more than they were six months ago.

For those who have been unable to put money aside in recent
months as inflation has soared and payment responsibilities
mount, taking out a debt consolidation loan may prove an
effective way to get finances back on a firm footing.
Taking out a loan for the purposes of debt consolidation
may prove particularly appealing for the one in three
people who were said to not to save on a regular basis. Of
these, 57 per cent said that a lack of spare cash was
holding them back from upping their savings efforts.

Commenting on the figures, Mark Cockburn, retail network
director at Lloyds TSB Scotland, said: "Saving is a must
for everyone. With economic conditions set to become more
challenging, having the comfort of a savings nest-egg could
be a lifeline for many Scots families during these
difficult times. But it is difficult to put money aside
with rising bills and ever increasing household expenses.
While everyone understands the good sense in saving, what
consumers told us they need is more guidance and advice on
how to save more when their finances are being squeezed."

According to Abbey, managing debt commitments has become
the number one priority for households across the country.
The group noted that 41 per cent of respondents believed
paying bills on time was now the biggest aim, compared with
nine per cent of people who placed saving at the top of the
list.


About the Author:

Abbi Rouse writes for All About Loans. Our visitors can
apply online for bad credit secured loans. We also
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