The latest Saving Britain survey by Birmingham Midshires reveals that British savings accounts have been raided over the last three months to pay for luxuries.
Savings account holders were four times more likely to splurge on treats than on essentials, the survey shows.
In the last quarter of 2005, a third of savings accounts were raided in order to pay for gifts, luxury shopping and impulsive purchases, according to Birmingham Midshires.
Overspending on current accounts was the reason for 27 per cent of savings account holders dipping into their savings, while a fifth used their savings to pay for holidays and weekend breaks.
Commenting on the findings, Kevin Mountford, head of savings – sales and marketing for Birmingham Midshires, says Britons' "desire to live a life of luxury is damaging their nest egg".
He says people should "plan ahead" when they allocate their savings for the month in order to ensure they can afford "extra treats" without having to raid savings.
The survey also revealed that those in the north of the country were the ones most unprepared for high credit cards balances over the last three months.
In this region, 15 per cent raided their savings in order to repay credit card debt, compared to five per cent of those in Wales, Scotland and the Midlands.
Luxuries lead to savings account raids, survey shows
Luxuries lead to savings account raids, survey shows
Thu, 09 Feb 2006
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