Britons focus on paying off debt

11 December 2008

Paying off debt has become a much higher priority, as worried consumers adjust to the nation’s economic problems.

During the third quarter of 2008, according to Unbiased.co.uk, the British public paid off £1.24 of their debt for every £1 they saved. In the previous quarter, by contrast, they had actually increased their debt by 15 pence for every pound they saved.

In total, British people paid off a great deal of their total debt in the third quarter, paying off over £23 billion more than they borrowed.

“It’s an excellent idea to save for the future,” said a debt expert for Think Money. “Savings can be a huge help when people have to deal with a period of reduced income, for example, or an unexpected one-off expense.

“For people in debt, however, it often makes sense to focus on clearing that debt before building a savings account. Aside from decreasing the amount of debt ‘hanging over them’ – which is always a good idea – paying off more of their debt today means they’ll be paying less interest in future.”

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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

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