Callcredit Check

Callcredit Check

May 14, 2009 05:45 ET

Callcredit Check Study: Recession Means Savings Levels Down on 2008 With a Quarter of Adults Not Putting Money Aside

LEEDS, UNITED KINGDOM--(Marketwire - May 14, 2009) -

Key statistics

- 21pc of the UK population do not have any existing savings at all, compared to 16pc in 2008

- 25pc of the UK population are not currently saving

- 38pc of the UK's working population could not survive beyond one month on savings alone

- 65pc of the UK population are more concerned about their financial situation now than they were 12 months ago

- 41pc of the UK population don't think their financial situation will have improved in 12 months time

- 45-54yr olds are most concerned about their financial situation with 70pc saying they are more concerned now than they were 12 months ago

- 25-34yr olds are the worst at saving with 52pc not being able to survive beyond one month on savings alone, compared to just 25pc of over 55s

- 38pc of people have either reduced the amount they have been saving over the past six months or stopped saving all together

- 12pc of the UK population has stopped saving over the past six months and started dipping into financial reserves to meet monthly outgoings

Independent research commissioned by credit reference agency Callcredit has revealed that over a fifth (21pc) of the UK population have no savings to their name, compared to 16pc in May 2008.

Worryingly, the number of people who don't save at all has increased from 19pc in 2008 to 25pc today. 12pc have had to stop putting money aside altogether and start dipping into their savings to help meet their monthly outgoings.

Owen Roberts, head of CallcreditCheck.com, comments, "The recession is affecting consumers up and down the country and having a significant impact on our attitude towards saving. It is a worrying trend that 38pc of people have either reduced the amount they have been saving over the past six months or stopped saving all together. With lower disposable incomes and the cost of living increasing, financial habits are changing and less money is being put aside."

An increasing number of people not saving, it's not surprising that 38pc of the UK's working population would not be able to survive beyond one month on savings alone. The 25-34 year olds are most at risk with 52pc claiming that they could not survive beyond one month on savings alone, compared to just 25pc of over 55s.

The same research shows that 65pc of the UK population are more concerned about their financial situation now than they were 12 months ago and 41pc don't think it'll get any better over the next year.

Owen Roberts continued by saying, "In order to help stay afloat, we advise consumers to take an active role in managing their debts and to start this off by getting a clear overview of everything they owe. Getting a copy of your credit report is the best first step you can take to better understand your finances and improve your situation.

"If people are concerned about their debt levels they should talk to their lender before things become unmanageable or speak to an independent organisation such as the Consumer Credit Counselling Service to work out the best way forward."

Budgeting tips from Callcredit

1. Work out what your income is, and balance that against realistic outgoings

2. Set a budget and stick to it

3. If you are taking out new credit, think carefully about how you would manage the repayments if interest rates start to rise again, or if you suddenly find yourself out of a job. This is especially important in the case of mortgages and secured loans where your home is at risk

4. Check your credit report regularly at websites such as www.callcreditcheck.com - a snapshot of all your financial commitments will show you where you can improve your credit rating and save money

5. If you are worried about your financial situation, seek advice from a professional organisation such as the Citizens Advice Bureau or Consumer Credit Counselling Service

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