British families have had to face the sobering reality of dipping into their savings accounts in order to make ends meet, according to one personal and business bank account expert.
Child Poverty Action Group spokesman, Tim Nichols, recently remarked in an interview that household finances have come under fire due to rising inflation in the wake of the worldwide economic recession. Families have had no choice but to raid their fixed rate bonds and other savings products in order to afford essentials like electric and gas, he also said.
Those who were fortunate enough to have some money put aside for the future have little choice but to dip into their savings, said Mr Nichols, as oftentimes there is no other way for struggling families to pay the bills. He pointed towards consumer spending patterns as proof of the practice, as individuals seem to be draining their bank accounts for both major and everyday purchases.
However, the savings expert also remarked that those Brits without any kind of savings pots are finding it quite a struggle to stay afloat. Families who try to squeak by on low household incomes are impacted especially hard, he stated, as low income families who are under the poverty line are almost certainly not able to make any savings deposits even in more stable economic conditions.
Many households across the UK are finding it difficult to deal with their rising utility bills regardless of affluence, however, according to a recent study published by online resource uSwitch. The findings indicated that 24 per cent of all UK families are in the same rapidly sinking boat in regards to dwindling cash reserves and soaring gas and electric bills.