Money Talk Daily

One financial expert has revealed that more Brits have begun to take their finances more seriously as the economic downturn continues to rumble on.

David Kuo - The director of Motley Fool, said consumers "have been scared into being responsible" due to constant reports about the possibility of rising unemployment rates.

He also pointed towards the possibility that as many as one in ten Brits who can work will be jobless by the end of the year.

Consequently, consumers are concentrating on doing one of the following - if not both - ways of improving their financial standing.

Mr Kuo highlighted what he thought to be the most important - clearing as much debt as possible, including an array of borrowing tools such as credit cards.

By doing so, he states that should consumers eventually find themselves to be out of work then the burden of what they owe "is not as great".

Such moves to pay down debt comes as the Motley Fool director states that borrowers are taking advantage of the base rate standing at an all-time record low of 0.5%.

He goes on to claim people will begin to spend money more once they see signs of unemployment rates easing, although those who are looking to fund major purchases straightaway may want to consider making use of a credit card that offers 0% purchases.

In addition, he said that there has been an increase in the amount of cash put aside into savings accounts.

Britons looking to compare savings accounts to ensure they receive an attractive rate of return may be interested to hear the Motley Fool’s advice that people should look to set aside between six and nine months worth of expenditure to see them through in case they lose their job.

Taking the time to increase the amount placed into savings accounts and reduce debts, Mr Kuo asserts, "can be no bad thing for the UK because the only way that the UK can dig itself outside of this hole is to get consumer debt down to a more sensible level".

His comments come after Hargreaves Lansdown pensions analyst Laith Khalaf said that the recession will be a reminder to people to have a savings account as a form of back-up.

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