Consumers are often focusing more on making debt repayments rather than putting money aside for the future due to low savings rates, it is believed.
Lucy Grubb, a spokesperson for the Chartered Insurance Institute, believes that this trend is not a difficult one to understand.
She said: "This makes sense when interest rates on debt are so high and is particularly understandable when consumers probably see little value in saving when the interest rates on savings are so low."
Ms Grubb also suggested that debt repayments, which might help people to manage credit card debt, may prove an option to those hoping to positively change their financial position.
Meanwhile, those seeking to take stock of their current situation could benefit from the guidance of a financial adviser, she went on to point out.
Insolvency sector trade body R3 recently suggested that more than 900,000 consumers who have debt-related problems are not seeking help that could ease their situation.
Posted by Gemma Walker.
