According to a recent industry survey, over 66% of adults are saving what they can afford, whilst 13 million said they could not afford to save at all. Almost 20% of people questioned said they would borrow money to be able to purchase something they wanted.
Interestingly, only 10% of people surveyed saved for bigger purchases whilst 25% went for it on credit.
Our View
Credit is becoming easier to get hold of due to its availability and competition in the markets, especially with interest rates being fairly low.
Our advice to everyone that takes on credit is two-fold. Firstly, never secure any unnecessary debt to your home. Secondly, make sure you look into the interest rates you are being charged. It could be uncompetitively high or rise out of control if interest rates rise generally.
Make sure you can afford it.