An industry expert has recently stated that Brits need to make sure that they are not saving money when they have a lot of high interest debts that they need to pay off. There are many people who, although they have high interest debts such as credit cards, store cards, loans, and overdrafts, continue to put any spare cash into their savings accounts rather than using it to repay some more of their debt.

Justin Modray of online resource Candid Money said that in the current financial climate it was important for people that had high interest debts to focus on using their money to repay these debts rather than using it to put to one side. This has become particularly important given that the base interest rate has remained, once again, at an all time low of just 0.5 percent, which means that savers are unlikely to get much if anything by way of returns on their savings.

Modray said that the sensible option for consumers in debt was to make sure that they made payments on their debts and tried to get themselves back on track financially rather than putting money into savings where they would get little in the way of interest whilst paying off debt that came with a shed load of interest added. This way, consumers could get themselves back on track and avoid paying a lot of unnecessary interest.

He said that those who already had savings could use them to repay debt and could put extra money toward making debt repayments without the worry of saving for emergencies.

Modray said: “Those fortunate enough to have savings can use them to stave off debt, but I think for many it’s more a case of just trying not to drown in debt and saving for the future remains a pipedream.”

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