The pressures of the credit crunch are having a detrimental effect on Britons' ability to save, a new report indicates.

According to credit reference agency Callcredit, 40 per cent of UK workers could not survive for over a month on just their savings - a figure that rises to 52 per cent among 25 to 34-year-olds.

The agency asserts that one in ten people have begun dipping into their savings in order to meet their day-to-day outgoings and are unable to save further.

Owen Roberts, head of Callcredit Check, said that the findings illustrate how Brits' ability to save is being damaged by the credit crunch.

"We all need to take an active role in dealing with our debts. The first step is to get a copy of your credit report for a clear view of everything you owe and then review your bank statement to see how much you're paying out each month," he said.

Price comparison website uSwitch.com claimed last year that consumers could save £15 billion in interest payments by taking out debt consolidation loans.
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