Many Brits have found it nearly impossible to put any money aside in savings accounts due to the current economic climate, one personal and business bank account expert has recently stated.
Large numbers of UK consumers have found themselves having to rely on credit cards or other sources of finance in order to make ends meet in the wake of the recession. Rising living expenses, low interest rates, and high inflation have all come together to make things even harder on savings-minded Brits, according to online resource Candid Money’s Justin Modray.
Mr Modray recently said that it’s decidedly out of reach for the majority of people in the UK to put away money for their future. Those who were fortunate enough to have been able to build their savings pots before the global economic downturn are most likely draining them to pay down debt instead of using their savings balances with an eye towards the future, the savings expert added, while those who had nothing put away in savings products will be unable to start any time in the near future.
In spite of the difficulties, Mr Modray was quick to say that while low interest rates were far from beneficial to savings products, will aid in keeping mortgage repayments relatively inexpensive. He also said that the Bank of England’s Monetary Policy Committee is expected to keep the nation’s base interest rate at its more than 29 month low of 0.5 per cent for the foreseeable future.
The savings expert did issue a warning, however, remarking that the low rates will begin to be more than a nuisance once the full force of spending cuts and tax rises are finally felt.