People should protect money to avoid debt

Mon, 25 Jun 2012

People in the UK harbouring worries catalysed by uncertainty in the current economic climate could take steps to protect their money.

Which? has called on consumers to safeguard their holdings as wider economic struggles continue to cause personal finance concerns.

The website was speaking in response to news that Moody's Investors Service has downgraded the ratings of 15 banks and securities firms with global capital market operations.

Richard Lloyd, executive director at Which?, noted although the full impact of the alterations is not yet known, consumers can make moves to restrict any effects on their cash flow.

Mr Lloyd recommended individuals spread their money across numerous banks and ensure their funds are covered by the UK compensation scheme.

By doing so, people will see their savings guaranteed for up to £85,000 per financial institution.

And debt worries may be exacerbated through the move due to a possible rise in mortgage rates, with Mr Lloyd adding: "For too long banks have taken advantage of the lack of competition on the high street to increase the interest rates charged on , and overdrafts ."
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