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Debt stops people saving
18/11/2005 13:36:00
UK adults are blaming debt repayments for stopping them saving for the future, a new survey claims.
The poll by Britannia Building Society found that 55 per cent of Britons do not save cash regularly and 60 per cent claim that lack of money to spare is the reason. Almost a quarter of those not currently saving (24 per cent) cited debt repayments as the reason for them failing to put cash away regularly.
Those saving regularly put away an average of £170 a month, with a fifth saving their cash in the house. Over a quarter of those claiming to save each month said they were "not satisfied" with the amount they are putting away.
The report claims that the UK's "have now" culture is to blame and has replaced traditional saving for big purchases. More than half (57 per cent) of those quizzed admitted that they would borrow money if they wanted to buy something they could not afford.
Britannia chief executive, Neville Richardson, said: "Many people are obviously finding it hard to save due to the high cost of living and the culture of debt that has been growing in the UK over the past ten years.
"Recent research showed that 77 per cent of 16 to 18-year-olds had a savings account, suggesting that people are losing either the desire or the ability to keep saving as they get older."
The government is promoting the benefits of saving with a new Rights of Savers Bill, currently before the House of Commons.
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