Before the credit crunch hit, most of us put enough money aside to cover us for a rainy day or two.  But reports now claim 9% of the public have already run the pot dry and should there be a personal or home emergency – they wouldn’t be able to cover the cost!

Have we really had so many rainy days, or did we just not save as effectively as we originally thought we did?  Or, is it possible we’re so worried about using those hard earned savings, that we’re holding onto them for dear life, unable to rationally decide when is the time to use them.

National Savings and Investments confirm that, of those of us with savings accounts, 29% are choosing to go into debt rather than dipping into the pounds and pennies we’ve worked so hard to store away.

Despite re-payments on credit cards, or loans costing considerably more than the interest earned from most savings accounts, the option to use our savings is being ignored, and instead people are struggling to pay off their debt and risking their credit rating…and sanity, when they don’t need to!

I’m sure that for many, keeping savings locked away provides a mental security blanket reminding them, no matter what, they can always fall back on their savings.  However, the logic that now would be the right time to “fall back” on them, seems to have gone out the window!

With the credit crunch hitting us where it hurts, many households are now reliant on just one salary, if any at all.  Surely we can agree that now is the right time to take the “security blanket” away, and encourage those lucky enough to have savings, to use them?

Do we need to re-train people so they understand it would be best practice to use their savings rather than taking out loans or running up unnecessary credit card bills?  After all, if they don’t need to pay of credit card debt, they may be able to begin to save again.
Do people not realise by using their savings for the rainy days which have now arrived, they are using them for exactly what they planned for …the safety of their future.