Eliminate debt

Clear debt before saving, expert recommends

26-03-10, 08:27 in Eliminate debt
Clear debt before saving, expert recommends
Brits are being advised to manage their credit card debt rather than try to save because of low interest rates.

This is the suggestion of MoneyExpert.com head of research Pierre Williams, who said that now is a good time to consider paying off debts rather than prioritising savings.

"It's certainly a pretty dire time for savers," he commented.

"The current average return on an instant access savings account is a pathetic 0.7 per cent so those with debts may well do better to clear those as soon as they can."

Mr Williams went on to say that those with mortgages are the "big winners", with many borrowers able to take advantage of low interest rates by overpaying each month.

The finance expert was commenting after new findings from Santander, which revealed that Brits managed to collectively save £59.4 billion over the past 12 months.

It was also discovered by the bank that that the average saver is able to put away £219 each month, which is an increase of 34 per cent from the figure recorded a year ago.

Posted by Gemma WalkerADNFCR-2660-ID-19692481-ADNFCR

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