Debt repayment ‘a priority for some non-savers’

Not all people who are neglecting to save money are being irresponsible, an expert has suggested.

Fool.co.uk director David Kuo implied that some are deciding that using their cash for debt management purposes is more important.

“[They] are paying off debts and are taking advantage of the relatively low interest rates to pay down more of their mortgage, credit cards and loans, which is very sensible,” he remarked.

Other people are simply not bothering to save – which Mr Kuo said was understandable given the low interest rates available at the moment – or do not have any spare money to put by.

His comments were made in response to the latest Nationwide Savings Index, which fell to its lowest level ever after one year of reporting.

It indicated that more than a quarter of the population (26 per cent) are failing to save anything, while almost half (46 per cent) are not putting cash aside on a regular basis.

By Chris Trimble