The credit crunch and recession have led many Britons to change their attitudes towards debt management, according to one finance expert.
Low interest rates on savings are prompting many to pay off more of their debts rather than put money away in accounts that offer low returns, explains Vicky Redwood, UK economist at Capital Economics.
"There has probably been a bit of a change in attitudes, prompted partly by the realisation that they can’t just refinance, the fact there are very low rates, and partly by the fact that the assets that they have bought have fallen in price," she comments.
Ms Redwood adds that this change in attitudes towards debt management is unlikely to last permanently and warns that problems could be seen again in the future.
Figures from the Bank of England show that the average interest rate paid on instant access savings accounts at the end of February was 0.17 per cent – a record low.
This could be a factor when Brits consider how to make best use of their money, with nearly a third of adults expected to reduce or pay off their debt in the next six months according to the JGFR Financial Activity Survey.