People 'should repay debts before saving money'

Consumers facing financial difficulties should aim to repay their debts before opting to save money, it is believed.

A spokesperson from the Consumer Credit Counselling Service has suggested that people looking to overcome things like credit card debt could adopt this measure because of interest rate differences.

He said: "It is better to pay back debts before starting to save as debts cost more in interest than you will make in savings."

Meanwhile, in more general terms, the spokesperson went on to say that levels of confidence among the UK's workforce may currently be low due to fears surrounding their job security.

The current state of the UK's housing market may additionally be having an impact on people's financial confidence, he suggested.

Mintel's director of retail Richard Perks has also recently noted that the UK public appears to be aware of the potential impact that things like rising interest rates could have on their finances in the future.

Posted by Tom Burroughs.