Building up a nest egg in a savings account can help protect against future debt problems, one expert has claimed.
James Falla, director of debt counselling agency Thomas Charles, explained that if people have a substantial amount of money in savings accounts, they could better ride out problems such as mortgage payment increases.
He said: "The bottom line is that quite often, the root of a more serious debt problem can be found in situations which may have been overcome if somebody had some savings behind them."
Mr Falla added that younger people should make sure that they start putting money in to savings accounts as early as possible and that they should also be "thinking about saving seriously" if they wish to avoid debt problems in future.
Not having enough in savings is a problem across the whole country, he concluded.
According to research by Debt Help UK, the average household owes a total of £7,650, not including mortgages .
It also estimates that UK residents spend £8.1 billion more than they earn each year.
Savings help protect against debt problems
Savings help protect against debt problems
Wed, 09 Apr 2008
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