Study: Savings are raided in run-up to Christmas

Some 37 per cent of consumers have dipped into their savings in the past three months to cover their living costs.

Research by Halifax shows that on average £1,186 was withdrawn by individuals so they could afford to meet various demands and this highlights how some people may be overstretching themselves.

Among the most popular reasons for seeking out additional funds is for emergency home or car repairs (23 per cent), holiday costs (18 per cent) and overspending on a current account (16 per cent).

Over one-quarter (27 per cent) of those surveyed said they do not make a conscious effort to stop themselves from raiding their savings, while 72 per cent do not have a buffer limit – an amount of money they try not to let their savings fall below.

Richard Fearon, head of Halifax Savings, said: "Raiding your savings can sometimes be inevitable, but in the run-up to Christmas the data shows the average amount being raided from savings is much higher than the average amount being saved. Managing your savings is an important part of managing your money overall."

If people do not look after their financial situation, then they may need to seek out a debt solution further down the line. This is why individuals have to stay on top of their outgoings and look to put some cash aside out of every wage.

In an effort to prevent themselves from using their savings, 25 per cent of those questioned keep them in a separate bank account, while 14 per cent have fixed-term accounts. As well as this, 34 per cent prefer to cut back on other expenses, rather than dip into their savings pot.

People in the north-east (42 per cent) were found to be the most likely to take money out of their savings, while those in the Yorkshire and the Humber region (30 per cent) resorted to this method the least.

By Joe White