There has been a big shift in the way Britons think about their finances, according to one financial planning firm.
The public could have decisively turned away from saving money each month due to the current financial climate, it has been suggested.
Analysis from Ark Financial Planning indicated today that many people could be concentrating on paying off their debts rather than putting money by for the future. An expert at the firm said that latest industry surveys suggest a shift from the "debt is good" culture that was found in the UK prior to the beginnings of the credit crunch.
This view is bolstered when the results of the Nationwide Savings Index are taken into account. The lender showed earlier this week that fewer than one in five (16 percent) believe that now is a "good time" to save.
Meanwhile, Abbey revealed that typical monthly savings deposits had declined by £43 to £120 over the past three months.
Widespread availability of cheap credit - whether through mortgages, loans or cards - led to personal debts swelling in the years leading up to the credit crunch, which began in 2007. Charity Credit Action recently suggested that the total amount owed by UK consumers has reached £1.46 trillion.
Philip Stevenson, chartered financial planner for Ark Financial Planning, said: "I think we have had a culture that's developed over the last ten years that [suggests] debt is good. No savings, don't pay for it, just go and get it and worry about it afterwards. There has been a definite trend away from saving."
He added: "I think we are in a position now where people are more concerned with paying off debt rather than saving. It's got to be a good thing to reduce the debt levels. That's a more attractive proposition than saving anyway."
