Nov
04
2010
Those with umbrella companies 'paying off debts'
Posted by Sarah Putt
Contractors with umbrella companies are choosing to pay off any debts they have instead of saving.
This is according to a spokeswoman at Moneyfacts.co.uk, who noted that people are currently going through a phase of making sure their finances are kept up to date, or at least getting them more stable.
She believes that those with an umbrella company are taking this option as they realise that jobs are still being lost and the work scene is still tough, despite the worst of the recession looking likely to be over.
The expert explained: "Saving rates are so low so there's not really that much incentive for people to save, so they are choosing instead to pay off their higher borrowing debts where rates are a lot higher."
Her analysis of the situation follows on from the latest figures from the Bank of England, which found that consumer credit increased by £0.3 billion in September, with total net lending to individuals jumping by £0.4 billion during this month.
Contractors with umbrella companies are choosing to pay off any debts they have instead of saving.
This is according to a spokeswoman at Moneyfacts.co.uk, who noted that people are currently going through a phase of making sure their finances are kept up to date, or at least getting them more stable.
She believes that those with an umbrella company are taking this option as they realise that jobs are still being lost and the work scene is still tough, despite the worst of the recession looking likely to be over.
The expert explained: "Saving rates are so low so there's not really that much incentive for people to save, so they are choosing instead to pay off their higher borrowing debts where rates are a lot higher."
Her analysis of the situation follows on from the latest figures from the Bank of England, which found that consumer credit increased by £0.3 billion in September, with total net lending to individuals jumping by £0.4 billion during this month.