Motleyfool: Debtors must switch their mentalities

Debtors have been advised to change their habits from spending on credit cards to saving money.

Director of motleyfool.co.uk David Kuo remarked upon the fact that more than a quarter of parents currently have no savings or investments to rely on in times of need, saying that “we have got out of the habit of saving money”.

He stated that a change of emphasis was required but the problem remains that there is a lack of attraction in saving.

“The interest you are earning on your money is not there,” Mr Kuo went on, adding that this is a “huge disincentive” for people.

“Why would you want to save when all you’re doing is getting a pittance for your money?” he asked.

Further figures from Santander revealed that one-fifth of the 28 per cent of families who admit to having no nest eggs have less than £1,000 to depend upon.

And other parents are withdrawing, on average, £1,800 of their total savings.

By Sarah Adie