Better to use savings than take out loans claims that it is better to use savings to make ends meet than to obtain loans at excessive interest rates.

The study from Schroders has revealed that almost one-third of UK citizens have made use of their savings and investments in order to supplement their income over the period of the last twelve months, which constituted £60 billion in total.

According to, this news is far from being encouraging because people in the UK already save not enough to provide themselves with a comfortable retirement. Nevertheless, using savings is a better way out than taking out loans. In fact, more than 30 percent of savings accounts are paying not more than 0.1 percent of annual interest, whereas the average interest charged on credit cards is 16 percent and over.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.