The savings accounts of people in the UK took a blow as shopper withdrew invested cash in order to make winter purchases, according to a new report.
Around 12 per cent of savers took money out of their bank to cover the luxury items, gifts and impulse purchases, Birmingham Midshire’s Saving Britain study has claimed.
Younger consumers were found by the organisation to have been more likely to spend their money, with 13 per cent of under-30s spending their savings, compared to 10 per cent of 30 to 50 year-olds.
And the company’s director of savings, Jason Robinson, recommended that people put some money aside for the winter months.
“[Saving] a smaller amount of money each month and leaving it untouched is much better than saving more than what is practical and being forced to raid,” he said.
According to the money charity Credit Action, the combined amount of personal debt in the UK reached £1.25 trillion in December 2006.
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