Paying personal debts ‘threatens rate of recovery’

WORRIED consumers are saving more and focusing on paying off debt as financial uncertainty continues to threaten the country’s immediate recovery.

Figures on household finances reveal that a total of €97 billion is on deposit in current and saving accounts and that the amount owed to the banks in standard consumer loans has fallen by €6bn in the last year.

The Central Bank analysis also suggests the ratio of savings is steadily rising among workers who are frightened of taking risks.