Debt repayment becomes ‘top priority’

Debt repayment has become the top priority for consumers looking ahead to 2009, a new study by PricewaterhouseCoopers (PwC) has revealed.

According to the survey, 20 per cent of those questioned now consider paying off credit cards, loans and overdrafts to be most important as consumers look to become debt free, with 16 per cent feeling taking a large holiday will be their top spending priority next year.

Buying a new car had dropped down the list of consumer’s spending priorities, falling from 6th to tenth place since the research was last conducted in April.

Matthew Hunnybun of PwC noted that the credit crunch may mean employees increasingly ask for their benefits to be paid in cash rather than using a more tax-efficient method, adding: “Falling consumer confidence clearly impacts how individuals spend their money.”

A survey recently conducted by Unbiased.co.uk revealed that the number of Britons paying off their debts with savings has increased over recent months.

By Tom Musk