Consumers cutting back on savings to pay down debt

Consumers cutting back on savings to pay down debt

Instead of saving, consumers are using spare cash to pay down debt

Consumers are cutting back on the amount they are saving and doubling their efforts to pay down debts due to fears over their financial futures, according to a new survey.

The latest Nationwide UK (Ireland)/ESRI savings index for September found that a majority of people were using spare cash to pay off debt.

The index found a fall in the number of people who believe now is a good time to save.

Despite having a more negative outlook on savings, there was a small rise in the savings index, which shows some are saving more.

Managing director of Nationwide UK (Ireland) Brendan Synnott said: “Savers are very aware of the returns they are getting for their deposits and following a recent further decline in savings interest rates, we are now seeing an increase in the proportion of people who will use spare funds to pay down debt rather than choosing to save.”

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