Struggling Brits ‘raiding savings’

With millions of British consumers struggling to find a debt solution, recent research has found that they are increasingly having to raid their own savings to solve their financial issues.

The latest figures from Birmingham Midshires have shown that more people are adding to a saving account but the amounts being accumulated have diminished considerably since early 2007.

During the past three months, the typical British saver has set aside £814 but has taken out as much as £961 over the same period, the financial services firm reports.

A general worsening of the UK’s economic condition and the seriousness of the country’s personal debt management issues are seen as the primary reasons for this so-called savings deficit.

“The current economic climate – a time when purse strings are tightening throughout the UK as a result of increasing bills and higher levels of debt – has had a distinct impact on balances,” a statement from Birmingham Midshires read.

Engage Mutual Assurance reported recently that British parents expect to cut back on their contributions to child savings accounts as a result of the financial pressures they will face this year.