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1 trillion 'debt milestone' threatens future financial security of millions, says IFA Promotion

- For every pound saved, we’re borrowing 88 pence -

Debt figures are set to hit 1 trillion (1,000 billion) later this month when the official figures from the Bank of England are released. It seems that no matter how bad the news gets Britain simply cannot turn over a new financial leaf as far as spending and borrowing habits are concerned.  Updated figures* from IFA Promotion, the organisation promoting the benefits of independent financial advice, show that for every pound we save, we are borrowing 88 pence!

This time last year, for every pound saved, we were borrowing 64 pence. The actual amount we save has stayed roughly the same but the amount we borrow has risen dramatically, despite the rising interest rates. While this ‘savings brake’ (the ratio of how much we are borrowing - not including mortgage debt - compared with how much we are saving), continues to rise, there seems little hope for the nation’s finances.

David Elms, Chief Executive of IFA Promotion, commented, “People cannot continue to kid themselves they’re savers when they’re taking on more and more debt at the same time, and destroying their long term financial security.  We hope awareness of this massive 1 trillion debt millstone will act as a prompt for millions of borrowers to review how well they are budgeting for the future.” 

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Elms concluded, “If people are unsure how to manage their money better, one positive step would be to visit a local independent financial adviser who can help them agree an action plan to get back on track”.

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.

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*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.

For further information, please contact:

David Elms, Chief Executive           Chloe Merriman / Liz Willder

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 Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

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 UK and is sponsored by 26 leading financial institutions. In 2003, over 330,000 consumers and businesses used IFA Promotion to find local independent financial advice.

 

IFA Promotion believes Independent financial advice should be:

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  Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

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  Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

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  Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

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  Independent Financial Adviser Promotion’s sponsors

AXA	National Savings & Investments
Bright Grey	Norwich Union Life
BUPA	Old Mutual Asset Managers
Canada Life	Prudential
Children’s Mutual	Scottish Equitable Plc
Clerical Medical Investment Group	Scottish Life
Eagle Star	Scottish Mutual Assurance Plc
Friends Provident	Scottish Provident
GE Life	Scottish Widows Plc
GMAC Residential Funding	Selestia
INVESCO Fund Managers Ltd	Standard Life Assurance Company
Legal & General	Skandia UK Group
Mortgage Express	Zurich Life Assurance Company