Savings first to go during crunch

New research reveals that almost half of adults in the UK are planning to cut back on saving money, while one in four will default on debts in a bid to make ends meet.

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The survey for American Express Insurance Services found that 44% of people would stop paying money into savings accounts if their budget becomes too stretched.

A further two in 10 (21%) would stop making contributions to their children's Child Trust Funds, while 14% said they would stop making pension contributions.

If finances became too tight, 12% of the 2,082 people questioned by YouGov said they would no longer pay their credit card bill. And the same proportion said they would stop their monthly car finance payments, while 11% would no longer repay a personal loan.

Insurance products such as identity theft cover and payment protection insurance would no longer be a priority for nearly a third of people, while 27% would cancel their health insurance policy.

Meanwhile, one in four people would stop paying for travel insurance and 17% would cut back on pet insurance.

Copyright © PA Business 2008

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