2007 started with higher levels of borrowing and lower levels of saving
Consumer debt levels in the UK have been at the centre of concern for some time, with many consumers facing unmanageable levels of debt, and record numbers of people having to go insolvent. Banks and lenders have been facing sky high levels of bad debt. However, despite all of this the first quarter of 2007 saw consumers in the UK borrowing more than saving, with over fifteen billion pounds worth of secured and unsecured finance being taken out in just the first three months of the year.
The amount borrowed in the same period of 2006 was £100 million less than in the first quarter of this year. On the other hand the amount of money being saved over the same period has fallen by six billion pounds between the first three months of 2006 and the first three months of 2007. This shows that despite the concerns in relation to consumers debt borrowing has still gone up from the first quarter of last year, and saving has gone down compared to the first quarter of last year.
The statistics were released by an independent financial website recently. One official stated: "Last year was a record-breaking year for UK savers, with an increase of nearly 150 billion pounds in the amount saved in total by UK consumers, but the 'savings break' ratio has now moved back up above the 40 pence mark. Personal debt in the UK continues to rise and, as such, all the conscientious effort being made on saving money is being undone by continued increasing usage of credit cards, loans and overdrafts."
According to the research many people are failing to save any money at all these days, and some are saving some money but not enough to look after them when they eventually retire.
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