Use of debt management techniques “encouraging”

Britons are increasingly realising the importance of debt management techniques as a result of the recession, it has been suggested.

A poll by Fairinvestment.co.uk has revealed that 44 per cent of people would choose to save any money left over at the end of each month.

In addition, more than a quarter of respondents stated that they would pay off debts with the cash, with an additional six per cent intending to make overpayments on their mortgages.

With just ten per cent of those surveyed saying they would spend the extra money on luxuries, chartered financial planner at Fairinvestment.co.uk Sharon Bratley welcomed the “encouraging” results.

She noted that aiming to become debt free before making savings is “wise”, as high interest can be charged on money that is owed.

Meanwhile, Rapidata has revealed that some consumers have been cutting back by halting direct debit payments to charities, with cancellation rates increasing since the credit crunch began.

By Andy Mackay