Recession has changed saving habits

01/10/2009

One of the by-products of the recession is that it has changed the nation's attitudes towards savings and debt.

That's the view of Moneynet.co.uk spokesperson Andrew Hagger, who claims that people's minds have been focused on their personal finances thanks to growing unemployment and debt problems'>debt problems.

Mr Hagger said that the days of buying goods on credit and refinancing the debt onto their mortgages are over and that the nation has been stung into thinking about savings and debts more.

He added that unemployment has been another major factor, with those who haven't been made unemployed probably knowing somebody who has and this has made them take a more prudent attitude towards debt and long-term savings.

Favourable interest rates have also tipped the balance as well, with fixed rates becoming particularly attractive over the last six months or so, which has encouraged people to put funds aside to cover emergencies.

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