Savings could help you avoid debt in an emergency
05/12/2011

Debt management company Gregory Pennington has welcomed the findings of a survey by Confused.com which found that 80% of people in the UK currently put money into savings every month.

Online PR News – 12-May-2011 – Manchester – Debt management company Gregory Pennington has welcomed the findings of a survey by Confused.com which found that 80% of people in the UK put money into savings every month, commenting that savings offer valuable protection against problems with debt.

But the company added that the remaining 20% should make sure they are taking steps to protect their finances, and get help if any underlying financial problems are preventing them from saving.

Confused.com found that of the 80% that are regularly saving, 24% say they are saving for nothing in particular or for a 'rainy day'. 22% are saving for the 'long term' or retirement, while 20% are saving for a house deposit.

An expert at Gregory Pennington commented:

"Savings remain arguably the best possible protection against debt. Even for people who actively avoid taking on debt, unexpected costs can often cause real financial difficulty, so it's important that people have at least some money they can fall back on.

"It's very encouraging to see that four fifths of people in the UK are regularly saving, especially with such a high proportion saving for a 'rainy day' - that money could come in very useful in an emergency.

"Saving for other purposes, such as a holiday or a new TV, is much safer than buying on credit - but we would still advise those people to make sure they have a good savings pot ready for financial emergencies, such as unemployment or expensive car repairs.

"It's likely that many of the 20% who aren't saving simply can't afford to do so. If that's because of debt, then their debt repayments should take priority, as the consequences of non-payment can be severe and costly. But it might also be worth seeking professional debt advice, to see what other options might be advisable - such as taking steps to maximise their income or working within a strict budget."

-ENDS-