Paying off debt is sensible, expert says

People are wise to use the current period of low interest rates to reduce their debts, an expert has suggested.

Commenting on the issue, David Kuo, director of Fool.co.uk, said that this form of debt management is shrewd.

He stated: "Those who don`t save are paying off debts and are taking advantage of the relatively low interest rates to pay down more of their mortgage, credit cards and loans, which is very sensible."

Mr Kuo made his comments following the release of the most recent Nationwide Savings Index, which fell by three points to its lowest level since it was started in June last year.

It found that 26 per cent of people polled were saving nothing at all, while less than half (46 per cent) were saving regularly.

In addition, 60 per cent reported they were saving less than they needed to, which was a rise on the 56 per cent recorded six months ago.