Savings Plunge as Brit’s Focus on Repaying Bad Credit Debts
New figures have been published which show the amount of money that Brits saved in the second quarter of 2010 fell to £15 billion, £7 billion less than the first quarter of 2010.
Brits have decided to focus on repaying bad credit debts on loans, mortgages, overdrafts and credit cards instead of putting money aside.
“The last time we saw such a drastic shift in financial habits was at the height of the credit crunch” said a spokesperson for Bad Credit Loans 4 You, a specialist at sourcing credit loans for people with bad credit /loans-for-bad-cr ...
“For the first time since 2008, people have let their savings slip and are choosing to repay more debt than they are borrowing”.
During the second quarter of 2010, more than £1 billion was paid back over and above the amount that was borrowed, a figure which equates to 7p being repaid by consumers for every £1 they saved.
Finance charity Credit Action recently spoke out about how they believed bad credit debt repayment would be good for the whole of the UK.
According to the organisation's advocacy and media officer Jo Parsley, it would be better for Brits to get rid of any existing debts they may have and to live within their means.
She suggested this sort of change would create a positive outlook for the UK economy, since a nation of borrowers who are "out of control" is not good in the long run.
"There has been a need for consumers to get on top of their finances for many years, as personal debts grew over the nineties, reaching levels that were unsustainable," said Ms Parsley.
The Bank of England recently kept the base rate at an all time low of 0.5% for a record 19 consecutive months, ensuring that interest earned on savings remained low.
It’s believed that some rate setters think it is time for an increase and will side with Andrew Sentence, who has voted for the rate to be raised since June this year.
This will bring good news to those who are after a better rate of interest on their savings, but those with bad credit problems will be concerned how this may affect them.
While the interest rate remains low, the number of Brits repaying their bad credit debts is expected to increase, with no significant financial benefit for them to continue saving.
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of CIFAS, Repossession, Bankruptcy, CCJ’s and/or Defaults.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
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Loans 4 You of London Ltd
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Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in April 2010, bringing together a team of specialists that together offers over 50 years of expertise to help applicants gain the unsecured loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
Bad Credit Loans 4 You has a senior management team with over 50yrs collective experience providing vital knowledge of the bad credit loans sector & helping those with CCJ’s, defaults, late credit card payments, mortgage arrears & other bad credit rating problems.
Our mission is to aid people who have been discriminated against because of their bad credit loans problems. We assess bad credit loans applications on your current budget and ability to repay bad credit loans, not just your bad credit rating.
