Britons Putting Debt Repayments First

Thu, 19 Mar 2009

Many Britons are making paying off their debts their number one financial priority in the economic recession, a new survey has found.

The poll carried out by Fairinvestment.co.uk showed that more Brits are becoming careful with their cash during the downturn, with 44 per cent of respondents saying they would save any extra cash they had at the end of each month.

More than a quarter (26 per cent) said they would use any extra cash at the end of the month to tackle their debts, while six per cent would use it to overpay on their mortgage .

Furthermore, just 10 per cent said they would blow any extra money they had on luxuries such as clothes and make-up.

Sharon Bratley, chartered financial adviser at the price comparison website, said: "It is good to see that saving is important to so many people."

"However, although having a financial cushion is wise, it is also wise for people to pay off any debts they have first, which are likely to be charging high interest rates and then save any extra cash."

"The low percentage of people who would choose to spend any extra cash on luxuries is also encouraging and suggests that Brits are being more careful with their money.

According to latest figures from the national debt charity Credit Action, total UK personal debt stood at £1,457 billion at the end of January 2009, with the average household owing £59,730 including mortgages .
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