Debt repayment remains a priority

25/01/2010

Debt management advice may make things easier for the two-thirds of people for whom improving personal finance is major concern.

The figure comes from the latest consumer confidence survey by Nielsen-British Retail Consortium (BRC) which found that 69 per cent of people are using any spare cash they have to make savings or improve their debt situation.

Justin Sargent, managing director of Nielsen Consumer UK said: "The number of people saying they are saving is at the highest the consumer confidence survey has ever recorded and people remain very concerned about the amount of debt they are shouldering."

The survey, which monitors how consumers divide their income, found that 29 per cent of people were primarily using their money to pay off debt, while 40 per cent were putting their cash towards savings amid fears that the recession was far from over.

EuroDebt director Kevin Still commented: "We live in a slightly divided society. Those with surplus disposable income seem to be using this to target debt repayments, for example; their mortgage or high interest credit and store cards.

"However, for the millions of households that have no surplus income the story is very different and there is strong evidence that they are having to use credit cards just to make ends meet. This is a recipe for a debt spiral where borrowing and interest costs can get out of control. Denial is not an option and we would recommend getting professional debt advice."

Tags; Debt Management and Banking,

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