'It's impossible for me to save'

Alice McGrath, 36, from North Queensferry in Fife, is one of thousands of homeowners across Scotland without savings.

The arts agency development director lives in a three-bedroomed detached house with her two children.

Alice McGrath said she pushed herself to the limit with her mortgage

I have a credit union account with about £300 in it and capacity to borrow three times that at reasonable level of interest, but that's all I have in terms of savings.

We used to be on more of a solid footing but my partner and I separated a year and a half ago, which has been difficult on us financially. All of the savings that we did have were used in re-mortgaging properties and solicitors' fees.

When we first bought our house six years ago it was very reasonably priced but when I bought my ex-partner out, I pushed myself to the absolute limit of what I could afford for a mortgage.

I did this because I felt it was really important for my children's sake, as they love our home and needed as much stability as possible in a difficult time.

It is impossible for me to save. Spending is not on anything fancy but just day-to-day living expenses, household costs, childcare and mortgage.

I will pay off a long-standing debt shortly and so that should allow me to save a bit from then on. My fixed rate mortgage comes to an end next year so I hope to be able to cover that when it happens.

Some people might think that I should sell my house but I'd be reluctant to sell as it provides great stability and a comforting home for my children.

It's just the right size for all of us, the school is great and the children are really settled.

It does worry me but I am optimistic that it won't always be like this. I think I will be on a better financial footing in a couple of years - but not in a way that I'd be able to start investing in stocks and shares.

I try not to think about becoming homeless, or something happening that would mean we couldn't cope financially. But reading people's stories in the newspapers makes you realise how vulnerable many of us are.