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Savings will be made in 2012

Most Australians expect to keep their savings belts firmly strapped on during the coming year due to the global economic uncertainty.

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A new poll by Loan Market Group found 53 per cent of Australians want to boost savings in 2012.

When asked "What's your 2012 financial resolution?', 23 per cent said they would look to refinance their mortgage while 22 per cent said their priority was paying off credit card debt.

Just 2 per cent of the 581 respondents said they would donate more money to charity.

Loan Market chief operating officer Dean Rushton said Generation Y respondents were even more determined to bolster their savings buffer with 68 per cent saying that was their financial focus in 2012.

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"The consumer caution we saw for much of 2011 looks set to continue in the year ahead," he said.

"Despite interest rates being reduced in November and December, consumers are uncertain about the direction of the economy with events in Europe.

"Other recent Loan Market surveys have shown that the issues occurring overseas are top of mind for Australian consumers when considering their financial position.

"That situation is not likely to change even though Australia looks well prepared to weather the impact of the European crisis on the world economy.

"The poll results indicate that the Reserve Bank of Australia may again have to cut interest rates during the first quarter of 2012."

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