Thursday 10th April 2008
Britons are failing to adequately save for a "rainy day", according to a debt counselling service.
James Falla, director of Thomas Charles, explains that the UK operates "across the board" in a way which does not generate savings for such eventualities.
However, he adds that it is "very important" for young people to be aware of the benefits to be derived from having sufficient savings in place.
Mr Fallas comments come in light of the news that many homeowners are emerging from fixed-rate mortgage deals into a climate of elevated interest rates.
He says: "If people had some savings behind them, they may be in a position now to buy some time when their mortgage went up."
"Quite often, the root of a more serious debt problem can be found in situations which may have been overcome," he adds.
His advice may be of particular interest in light of the Bank of Englands decision today to reduce the base rate of interest to a flat five per cent.
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