Recession prompts rise in borrowing levels, claims unbiased.co.uk

New research from unbiased.co.uk has shown that savings plummeted from around £39 billion to £20 billion in mid-2008 and have not picked up since.

The latest figures from its Savings Brake research show people are now saving just over £16 billion. It found that UK consumers are now borrowing—including unsecured borrowing and equity release but excluding mortgages—37p for every pound they save. This is a dramatic change from mid-2008, when consumers were repaying £1.67 of debt for every pound they saved.

However, while debt levels are now much higher than they were in mid-2008, the new figures show they have dropped since the end of 2009. Overall, people in the UK are currently borrowing just over £6 billion, down from £14 billion at the end of 2009. New savings are now just over £16 billion, falling from more than £24 billion at the end of 2009.
 
Karen Barrett, chief executive at unbiased.co.uk, comments: “In order to ensure they are making the right choices with their money, it is vital that consumers seek professional advice from an IFA to strike the best balance between borrowing and saving.  An IFA can look at your overall financial position and recommend products from the whole of the market to guide you through.”