Savers Prioritise Debts Amid Employment Anxiety

The latest figures from the Markit UK Household Finance Index have revealed an increasing trend towards repayment of consumer debt. The research found with uncertain times ahead and public sector cuts imminent that consumers have realised the importance of reducing their debt. Public Sector workers are said to be the least optimistic about the future ahead of next month’s government spending review. The news of increased debt repayments comes hot off the heels of research carried out by Spanish bank Santander, which found a significant decline in the amount being saved by customers since the start of the year.

Tim Moore Markit economist said “Concerns over pay and job security remain at the forefront of people's minds, while stubbornly high inflation and an impending VAT rise are becoming increasingly difficult to ignore. Households have responded to the uncertain outlook by paying down debt, reining in their appetite for unsecured credit and delaying major purchases.”

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