SAVINGS ARE ON THE INCREASE
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| Article date: 27/09/2005 : 12:15:29 |
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Britons are saving a lot more than last year, a new report has revealed.
The Independent Financial Adviser (IFA) Promotion's quarterly savings brake report, shows that for every pound saved we are borrowing only 27p, as opposed to 69p at the same stage last year.
The report, which shows how much we are borrowing, excluding mortgage debt, compared to how much we are saving, indicates a big fall in borrowing from even its last report.
The 27p figure is from the second quarter of 2005 and the borrowing figure for the first quarter of this year was 52p.
The report also reveals a net increase in repaying credit card debt and a record increase in the amount of money put into savings accounts at banks and building societies.
The chief executive of IFA Promotion, David Elms, believes the impetus to save has mostly come in response to the activities of the Bank of England.
He said: "Increased commitment to regular savings is clearly good news, but it stems far more from recent interest rate moves than any sudden savings epiphany.
"To avoid a repeat of the last few years of rampant consumer debt and total neglect of saving, we need to see an overall shift in consumers’ ability to budget."
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