20% of workers `have used savings to pay debts`

11 June 2009

An international survey has suggested that 20% of the world`s workers have used some of their savings to pay down debt, according to The Guardian, while 13% have stopped saving entirely.

The research by HSBC claims that citizens of Britain, China, India and the US have largely opted to maintain their standard of living rather than put money into savings.

Clive Bannister, HSBC`s head of insurance, said: "The recession means that people are worrying more about surviving from day to day than they are concerned about the future."

A spokesperson for debt management company Gregory Pennington said: "Using savings to repay debt might not seem like the best idea to some people, but in fact it can save a lot of money in the long run, because the interest on debt tends to grow faster than savings interest.

"However, savings are still important, and we advise anyone in a position to do so to put money aside regularly. Without savings, a financial emergency can become a lot more serious, and could lead to debt problems."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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