A new financing study suggests that one in ten people in the UK may be hitting their savings in order to pay for unexpected household bills.
According to research from financial services provider Birmingham Midshires, some ten per cent of people withdrew from their savings accounts in order to pay for bills such as phone charges and credit card repayments.
Meanwhile, 12 per cent of the survey's respondents admitted that they used some of their savings to pay for impulse purchases and extravagant luxuries during the winter months.
Jason Robinson, director of savings operations for Birmingham Midshires, explained why winter is "an expensive time of the year" for many people.
"Utility bills can soar as we crank up the heating and we also use retail treats to ward off the winter blues," he said.
Typically, the start of the year sees many shoppers start to receive credit card bills requesting repayment of borrowing made in the run-up to Christmas.
However, moving debts to 0% credit cards could potentially enable users to spread their repayments over a longer period of time without incurring sizeable interest charges.
News Side
Financing report suggests why people are hitting their savings accounts
Mon, 26 Feb 2007
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