Families use `biggest savings ever` to repay debt

According to figures from the Office for National Statistics (ONS), families are setting aside the `biggest amount of savings ever` in an attempt to reduce their debt, the Telegraph reports.

The figures show that the average household saved almost £300 a month in the three-month period running up to September - the largest amount in any quarter in British economic history.

The ONS states that families managed to save 8.6p of every pound of disposable income they earned in the third three-month period of the year.

And although the figures don`t say exactly where the money is being used, it is thought that `the majority represented families paying off debts or selling off assets such as houses in order to improve their finances`.

Ben Read, a managing economist at the Centre for Economics and Business Research (CEBR), said: "We are seeing people paying down their debt, which effectively means saving more than they are spending."

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