You are here: Home > Media > Press releases > Britons are falling further back into debt indicating uncertainty for a sustained economic recovery

• Print Page

Britons are falling further back into debt indicating uncertainty for a sustained economic recovery

· Savings levels fall in Q3 2009 by £6 billion, after reaching a year high in Q2 of £19 billion

· Debt levels dip in Q3 2009 by only £1 billion

· For every pound saved in Q3 2009, the British public borrowed 32 pence, reaching an all time high for 2009

· Visit Unbiased.co.uk to find a local IFA for help and advice on your personal finances

As green shoots of an economic recovery emerge research from Unbiased.co.uk, the professional advice website, reveals that consumer savings levels have fallen once again in Q3 2009.  These dropped by £6billion to £13billion in Q3 2009, compared to the 2009 high of £19billion in Q2 2009. 

More worryingly, debt levels have not decreased with the dramatic drop in savings levels, with them dipping only slightly in Q3 2009 to £4 billion.  This is only a £1 billion drop from £5 billion in Q2 2009.  Debt levels are still almost double what they were at the beginning of the year.

Unbiased.co.uk’s Savings Brake* research reveals the ratio of how much we are borrowing (excluding mortgage debt) contrasted with how much we are saving.  As a nation we are now borrowing 31p for every pound saved.  This is an all time high for 2009, increasing from borrowing 27p for every pound saved in Q2.  

This is a stark contrast to the second half of 2008, which saw consumers fight the recessionary doom and gloom by concentrating on clearing their debts, with £1.61 of debt repaid for every pound saved. 

Karen Barrett, Chief Executive of Unbiased.co.uk, comments: “After the dramatic retreat from savings in favour of paying off personal debt in the first half of 2008, consumers are now slipping back into old habits, by borrowing around a third of what they save.  While our year on year data shows that this is reasonably good for a normal economic cycle, with savings levels currently billions lower than they were back in 2006 and 2007, this is creating a serious barrier to a sustained economic recovery.

“With the interest rates at 0.5% over the past nine months many consumers are unsurprisingly confused and at a loss as to how they can make their savings work hardest for them.  It is therefore vital for consumers to keep a close eye on savings rates and seek advice from an independent financial adviser, who can search the whole of the market, for the best deals for their personal financial situation.  Only an IFA will be able to help you strike the best balance between borrowing, saving and other financial investments.”

You can carry out a free and confidential ‘find an IFA’ search at Unbiased.co.uk to find a local, whole of market adviser who will be able to talk you through the most suitable savings options for you. 

ENDS

*According to independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion.  Data sources are Bank of England, British Bankers Association (unsecured borrowing + equity release, no mortgages), ABI, AIC and IMA.  With detailed queries on this analysis call Paul Hersey on 01737 213867.

Table 1

For further information on Unbiased.co.uk, the professional advice website pleases contact:

Sign up to Unbiased.co.uk’s unique Professional Connections service, allowing IFAs, mortgage brokers and solicitors to find and link up with other professional advisers across the UK to expand their current business network.

For expert commentary or case studies from over 200 media-friendly IFAs, journalists should visit www.unbiased.co.uk/bluebook to search the Blue Book Media IFA database.

Top tips for journalists when using Blue Book online:

1.         List and store all your IFA contacts in one place.  As well as having access to the whole Media IFA database on the Blue Book, you can also separately list your favourite Media IFAs.  You can add confidential, personalised post-it notes with extra details to Media IFA profiles.  These will be saved and always appear every time you log back into your account.

2.         Email broadcast Media IFAs.  The Blue Book allows you to email individual favourite Media IFAs for personal commentary or alternatively email a group of your favourite Media IFAs for a collection of opinions on a topic.  You can use the Blue Book online to conduct a straw poll on a specific topic for instance. 

3.         Online coverage generated by Media IFAs.  Each Media IFA profile contains links to their most recent online coverage.  This allows you to see what topic Media IFAs have been commenting on recently, allowing you to make a more informed decision as to which Media IFA you wish to speak to.

4.         Each Media IFA has a star rating.  This is calculated by how many journalist’s favourites lists each Media IFA appears on.  The more journalist’s favourites lists they appear on, the higher their star rating.  Look at the ‘top rated’ list to find out which Media IFA has the highest star rating.  

5.         Journalist recommendations.  The Blue Book gives helpful suggestions as to which Media IFAs other journalists have on their list of favourites.  Each Media IFA profile has suggestions as to other Media IFAs you may find useful. 

6.         Broaden out your contact list of Media IFAs.  Overall, the Blue Book online is designed to help you widen the pool of Media IFAs you can contact for commentary or help with articles you are writing.  Sign up to the Blue Book now in order to take advantage of all these features. 

Notes to Editors

Unbiased.co.uk, the professional advice website

Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs.  In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice. 

The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service.  These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options. 

IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer. 

Unbiased.co.uk’s product provider sponsors

Registered Office: Unbiased.co.uk is the consumer brand of IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606