Figures suggest first shoots of a savings revival
- For every pound saved, we are borrowing 61 pence -
Figures compiled for IFA Promotion*, the organisation promoting the benefits of independent financial advice, suggest the nation is beginning to take control of its finances. IFA Promotions savings brake (the ratio of how much we are borrowing - not including mortgage debt - compared with how much we are saving) shows that for every pound saved, we are borrowing 61 pence, and that new savings crept above 30 billion, while new borrowing hit a plateau.
IFA Promotions figures suggest that the current quarter (July-September) tends to be the worst for balancing our saving and borrowing; last year we borrowed 115p for every pound saved, effectively putting the nations savings into reverse.
Elms concluded, Its too early to say whether these first shoots of a savings revival will strengthen over the months ahead, or whether the expectation of a Base Rate peak will tempt people back towards borrowing. We are urging people to visit a local independent financial adviser who can consider their overall financial position and discuss how they can budget better and boost their savings.
To help consumers take control of their spending and borrowing, and get saving, IFA Promotion has produced a free dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money. You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you. Call 0800 085 3250 or visit www.unbiased.co.uk/getsaving.
-ends-
*According to independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion. Data sources are ONS (average earnings), Bank of England (unsecured debt levels), industry data and consumer research (number of loans and credit cards held). With detailed queries on this analysis call Paul Hersey on 01737 216 940.
Borrowing (ex mortgages) m | Savings m | Borrowed for every pound saved | |
2002 Q1 | 18,190 | 23,087 | 79p |
Q2 | 18,560 | 28,655 | 65p |
Q3 | 21,434 | 21,325 | 101p |
Q4 | 20,531 | 25,673 | 80p |
2003 Q1 | 13,798 | 21,711 | 64p |
Q2 | 18,054 | 26,210 | 69p |
Q3 | 23,984 | 20,881 | 115p |
Q4 | 21,762 | 31,095 | 70p |
2004 Q1 | 20,146 | 21,194 | 95p |
Q2 | 18,751 | 30,726 | 61p |
For further
IFA Promotion Lansons Communications
020 7833 3131 020 7294 3681 / 3677
david@ifap.org.uk chloem@lansons.com / lizw@lansons.com
For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotions Media Services hotline on 020 7294 3682 or search online in Media Services at www.unbiased.co.uk
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IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 10,000 firms of independent financial advisers across the
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