Less people able to save

An ING Direct-Melbourne Institute survey of 1,200 households has found that the proportion of families able to save has fallen from 54 per cent one year ago to only 46 per cent. At the same time, the number of households that are running into debt has gone from 4 per cent to 7 per cent. ING Direct Spokesman, Michael Smolders, said “Higher interest rates, bigger mortgages, record levels of credit card debt, larger grocery bills and the general rise in the cost of living are affecting our inclination and capacity to save.” The survey found that the number of people willing to commit to saving for home renovations was down to 14 per cent from 24 per cent while those who would save toward a new home was down to 14 per cent from 17 per cent.

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