Credit access ‘breaks saving habit’

Access to credit has made Britons turn away from saving to fund purchases at key times of the year, according to a financial advice charity.

James Ketchell, spokesperson for the Consumer Credit Counselling Service (CCCS), said that people have fallen out of the habit of saving due to the simplicity of getting credit.

“People no longer have the saving habit – easy access to credit has made it redundant,” Mr Ketchell said.

The Post Office recently announced it was to introduce a Christmas hamper savings scheme to fill the gap left when Farepak collapsed last winter.

Mr Ketchell suggested that this kind of scheme could reintroduce the habit to consumers and avoids the need for them to clear debt from credit cards in the New Year.

The credit crunch could also direct consumers back to savings accounts, according to a recent comment made by National Debtline.

It suggested that the credit crunch will make easy credit access less common, which could in turn end some people’s reliance on borrowing.