Abbey: Families risk falling into debt

Many families risk falling into debt as a result of neglecting to save, new research has revealed.

According to findings from a study by Abbey Savings, 20 per cent of parents with young children have no more than £1,000 to rely on should a crisis occur.

And 28 per cent admit to having no savings or investments whatsoever.

Director of savings and investments with Abbey Reza Attar-Zadeh remarked: “It is concerning that many families are saving less, as this could leave them facing financial difficulty in the future.”

The company has voiced worries that, with the higher costs of raising children, more families are at risk, with a quarter reducing the amount they are putting away by as much as £3,300 a year.

These figures follow comments from Simon Lambert of This Is Money, who observed that more needs to be done to educate people about saving, recommending debtors steer clear of bank and investment company schemes.

By Sarah Adie