Borrowing increases as savings decline
10.10.2008
The amount of money being borrowed through loans and other forms of credit has increased significantly, new research has revealed.
According to figures published by Unbiased.co.uk, consumer borrowing reached £5.9 billion during the second quarter of the year - £757 million more than in the corresponding quarter last year.
Meanwhile, consumer savings levels fell from £42.9 billion during the second quarter of 2007 to £38.5 billion this year.
David Elms, chief executive of Unbiased.co.uk, said it is now "more important than ever" for consumers to control their finances.
"People are currently feeling the pinch - but this will only continue to get worse if they are both increasing the amount they are borrowing and reducing the amount they are saving," he remarked.
One area of savings that may be affected by the credit crunch is pensions.
Julie Mulvanny, head of business development for individual pensions at Prudential, said in August that given their other financial commitments, stopping payments to pensions is an "easy" decision to make for some people.
According to figures published by Unbiased.co.uk, consumer borrowing reached £5.9 billion during the second quarter of the year - £757 million more than in the corresponding quarter last year.
Meanwhile, consumer savings levels fell from £42.9 billion during the second quarter of 2007 to £38.5 billion this year.
David Elms, chief executive of Unbiased.co.uk, said it is now "more important than ever" for consumers to control their finances.
"People are currently feeling the pinch - but this will only continue to get worse if they are both increasing the amount they are borrowing and reducing the amount they are saving," he remarked.
One area of savings that may be affected by the credit crunch is pensions.
Julie Mulvanny, head of business development for individual pensions at Prudential, said in August that given their other financial commitments, stopping payments to pensions is an "easy" decision to make for some people.