Credit crunch leads to change in Scots' spending

13/10/2008

Scottish consumers will be looking to reduce their debts - but will also be cutting back on savings.

A new report from Lloyds TSB suggests that the credit crunch-induced downturn, which many economists think has already turned into a recession, will cause wide-ranging changes to spending habits north of the border.

According to the research, 57 per cent have "taken action" on their personal debts over the past six months.

However, four in ten have also reduced the amount they put by in savings - and 21 per cent admit that they have a total of £500 or less saved.

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."

Nationwide, Lloyds TSB said that Scots saved less than average - with £9,939 put by compared to £12,703 in the rest of Britain.

Charity Credit Action has said that, across the UK, total personal debt stands at over £1.4 trillion.

Tags; Housing Debt and Bills, Young Family Finances, Recent Graduate Debt,

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