Scottish Widows reveals 'barriers to saving'

Britons are citing a number of factors which they claim are preventing them from saving money.

Repaying credit cards and other debts are preventing a significant proportion of people from putting money into savings accounts, according to new research.

Figures released by Scottish Widows show that 85 per cent of Britons claim that they do not have enough cash to allow them to set any aside.

Of such consumers, 42 per cent cite the burden of debt as being a particular barrier in preventing them from saving money, while 31 per cent claim that high taxes is stopping them from investing in savings accounts.

The firm - which includes the Scottish Widow ISA among its range of savings accounts - also reveals 67 per cent claim daily living expenses mean they cannot put cash away for the future.

Anne Young, savings expert for Scottish Widows, claims: "It has become more of a priority for people to reduce their current debts and simply get by on a day-to-day basis rather than saving for their futures."

Meanwhile, Adrian Coles, director-general of the Building Societies Association, states that there will be a greater need for people to increase their savings and pay down debts over the next few months.

Written by Mark Hornby