Low saving rates might encourage some people to consider paying off more of their debts, it has been suggested, which may have an impact on those who are looking to get credit.
Consumers whose debts have higher interest rates than their savings might benefit from opting for strategies like mortgage overpayments,
Fair Investment Company's head of pensions and investments Nick Scarrett believes.
He commented: "In these situations, it is worth paying off your debts if you can - monthly overpayments or ... one-off lump sum overpayments on your mortgage can really cut down your loan."
However, Mr Scarrett also pointed out that during times when saving rates are more favourable, people are likely to benefit more if they leave their savings be.
According to the Consumer Credit Counselling Service, a large number of people are having difficulties meeting the costs of their mortgage debts at present.
The first quarter of 2010 is said to have seen 1,160 calls made to its mortgage counselling centre.
Posted by Gemma Walker.
