This UK Savings Week, there will be a lot of discussion over the importance of saving.
For people who are unable to put a large amount to the side, some savings accounts can be opened with as little as £1. Then, you’re able to add to it as much and as often as you can.
Savings can be for a short-term goal such as a holiday or large bill (e.g. car insurance), a long-term goal such as a down payment on a house, and a lifetime goal such as a retirement fund. Generally, it is encouraged to maintain an emergency fund to cover up to 9 months of living expenses. The reason for this is to cover you for any potential change in circumstances for example, losing your job or dealing with an illness that prevents you from working.
However, we know that for many people across Scotland, a savings account with 9 months of living expenses; including accommodation payments such as rent and mortgage, as well as bills, food and travel expenses can seem out of reach. At Trust Deed Scotland®, we speak to people across the country who are struggling to make ends meet and saving any amount is currently unattainable. With the cost of living crisis stretching our budgets to the limit, every penny is needed.
If you are not in a position to start your savings journey, that’s OK. You are not alone.
UK Savings
Previous research by the Money and Pensions Survey (MaPS) found one in six adults across the UK had nothing in savings and another one in ten had £100 or less. This equates to 9 million UK adults with no savings and another 5 million with less than £100. Meaning these adults have been coping with rising costs and unexpected bills without a financial safety net. This can lead to reliance on credit.
These figures encouraged a national target of encouraging a further 2 million adults across the UK to save regularly by 2030.
Since this report from 2022, we can see little to no change positive change in saving habits across the UK. Although, attention was drawn to the problem a few years ago, a recent report found that:
- Almost 65% of adults in the UK believe they wouldn’t be able to last three months without borrowing money.
- One in seven adults said they have nothing in their savings. With 34% having less than £1,000 in a savings account.
- 33% of UK savers said they would struggle to cover a month’s worth of living expenses if they lost their primary source of income.
Turning to Credit
Research by the Money and Pensions Survey (MaPS) found that among the 79% of UK adults using credit, 43% felt anxious about how much they owe.
When struggling to make ends meet, reliance on credit can become the only option. However, using credit to for even one payment can quickly snowball into unforeseen fees. Many Trust Deed Scotland® customers get in touch having used credit to pay for essentials, and now have nothing left over to pay off debt repayments such as credit cards. If you are in a similar position, this may be the sign to get advice from an experienced debt adviser.
Paying Off Debt
If you are making payments towards debt, prioritise paying debt off before adding to a savings account.
Trust Deed Scotland® provide tailored debt advice on all available debt solutions in Scotland.
Our experienced Trust Deed Scotland® debt advisers offer non-judgmental, straightforward tailored debt advice and guide our customers step-by-step on their journey; allowing our customers to make informed decisions on the best solutions for them.
Benefits of a formal debt solution include:
- Affordable Monthly Payment
- Unaffordable Debt Written Off
- Interest & Charges Frozen
- Reduced Creditor Contact
- A Fresh Financial Start
Together, we can help you take on your debt and work towards improving your financial future. A future where you can achieve your savings goals.
Contact our team on 0141 221 099. Alternatively, get in touch via our WhatsApp Debt Advice service or to quickly check the debt solutions you may be eligible for, use our Trust Deed Wizard® tool.