Such is the claim of Lloyds TSB, which explained that while many consumers have attempted to slay their debt demons, savings efforts have dwindled substantially. According to a study conducted by the group, more than two-fifths (41 per cent) are now saving less than they were six months ago, with 36 per cent of people saying they had concentrated on clearing debt as inflation has risen and fears of recession have circulated. Indeed, the bank notes that while the current economic crisis may put a forced end to the buy now, pay later culture which has pervaded Britain, it seems that many people north of the border have struggled to put more of their money aside. More than a fifth (21 per cent) said that they currently have less than 500 pounds in their savings. So too, residents throughout the UK were found to have struggled to stash the cash as the financial climate has grown ever more inimical.

On average, 37 per cent of consumers throughout the UK are now saving less than they used to, with this proportion rising to 43 per cent in the 45 to 54 age group. However, younger generations were said to have bucked the trend, with nearly a third (32 per cent) of under-25s currently saving more than they were six months ago.

For those who have been unable to put money aside in recent months as inflation has soared and payment responsibilities mount, taking out a debt consolidation loan may prove an effective way to get finances back on a firm footing. Taking out a loan for the purposes of debt consolidation may prove particularly appealing for the one in three people who were said to not to save on a regular basis. Of these, 57 per cent said that a lack of spare cash was holding them back from upping their savings efforts.

Commenting on the figures, Mark Cockburn, retail network director at Lloyds TSB Scotland, said: "Saving is a must for everyone. With economic conditions set to become more challenging, having the comfort of a savings nest-egg could be a lifeline for many Scots families during these difficult times. But it is difficult to put money aside with rising bills and ever increasing household expenses. While everyone understands the good sense in saving, what consumers told us they need is more guidance and advice on how to save more when their finances are being squeezed."

According to Abbey, managing debt commitments has become the number one priority for households across the country. The group noted that 41 per cent of respondents believed paying bills on time was now the biggest aim, compared with nine per cent of people who placed saving at the top of the list.