What Happens When We Have Used Up Our Savings?

22/08/2010 by JohnBuck.

It seems that almost one third of adults in this country have raided their piggy banks over the past year to cover shortfalls in their income. This is from a survey, by Schroders, a well respected investment firm.  They estimate that savers have taken out a total of £60bn. So on average each person is taking out about £4,600. This is mainly because interest rates are at a 300-year low and savings deals have been taken away from the market, but there is also currently more incentive to spend than to save. My question is what happens when we have used up our savings? This recession has definitely not bitten some of us yet . . .

Posted in Finance | 2 Comments »