Lloyds TSB report that Britons are tackling debt but saving less
Released
on: October 22, 2008, 4:40 am
Press
Release Author: Lloyds
TSB
Industry:
Financial
Press
Release Summary: Lloyds TSB have reported that while many Britons
have taken action to clear their debt, they are saving less money.
Press
Release Body: Lloyds TSB Consumer Banking released
a new report revealing that over half of UK adults have taken
action to clear their debt, but despite gathering economic gloom,
almost two in five Britons (37%) are saving less money.
The
‘Financial Face of Britain' report reveals
the nation’s savings
and spending habits, debt levels and tests Briton’s overall
financial know-how.
The
in-depth study, of over 5,000 adults*, shows a distinct change
in financial behaviour as the credit crunch bites. But whilst
spending levels have been curbed, the current financial crisis
has hit consumer’s appetite to save at a time when a cash
reserve is vital.
The
report reveals a third of people have changed their spending habits
in the last six months and spent less to cope with the credit
crunch, with almost 40% of under 35s reporting that they have
been cutting back.
People
have also reassessed their finances, with over half (55%) of UK
adults taking action to clear their debt. Almost one in three
(32%) have increased the amount they pay off each month, with
a fifth (19%) focusing on paying off more of their debt which
is on higher interest rates, such as store cards.
But,
almost two in five (37%) are saving
less, particularly the older age group; with 43% of 45-54 year
olds currently neglecting their savings. While the younger generation
are bucking this trend, with almost a third (32%) of under 25s
currently putting more money to one side. But when it comes to
long term savings, almost three quarters (74%) of under 25s do
not have a pension and are not saving enough to secure their future.
Worryingly,
one in five people have less than £500 in their savings,
with four out of ten families having less than £500 available
to them should disaster strike, making many consumers vulnerable
to financial difficulty during these uncertain times.
In
addition, over two million families are also failing to put enough
money aside to secure their child/children’s future and
the average family savings balance of £7,542 is considerably
lower then the national average (£12,703) for a single person.
Consumers
are aware that they need to save more but many people want more
guidance and support to kick start the savings habit. Research
shows that the majority of consumers are looking for advice and
guidance on how to save more money and how to make long
term savings.
Ian
Larkin, managing director, Lloyds TSB Consumer Banking said:
"It has never been more important to save. Economic conditions
are set to become more challenging and a healthy savings balance
could prove to be a financial lifeline for some families during
the economic storm.
"But,
with rising bills it’s becoming harder to put money on one
side. We all understand the need to save but what consumers told
us they need is more guidance and advice on how to save more when
their finances are being squeezed. To tackle this, we are launching
a nationwide programme to help get Britain saving, which is going
to be packed full of advice on how to boost your savings balance
and make saving a habit."
For
more information visit www.lloydstsb.com/savvysaver
Notes to Editors:
*Research conducted by ICM with 5000 UK adults between 29th July
- 4th August 2008.
About
Lloyds TSB:
Lloyds TSB offers customers a wide range of current accounts,
savings accounts, insurance, loans and credit cards, designed
to meet different customers’ needs.
Lloyds
TSB Bank plc and Lloyds TSB Scotland plc are authorised and regulated
by the Financial Services Authority and signatories to the Banking
Codes.
Lloyds TSB Bank plc Registered
Office: 25 Gresham Street, London EC2V 7HN .
Registered in England and Wales
no. 2065.
Web
Site: http://www.lloydstsb.com/
Contact
Details: Amanda Glover
Media Relations Manager
Lloyds TSB Press Office
25 Gresham Street
London
EC2V 7HN
020 7356 2021
2009
