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Green shoots of recovery' lead brits back to debt

         Brits are shifting back to borrowing as ‘green shoots of recovery’ are starting to emerge

         Britain’s savings levels hit an all time low of 14 billion, while Q1 2009 saw 2.7 billion of new debt

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

With news that we are near the end of the recession all around us, research from Unbiased.co.uk, the professional advice website, reveals that the so called ‘economic optimism’ has led Brits straight back down the debt path.

Q1 2009 saw a dramatic shift in consumer behaviour and for the first time in six months, Brits took out more debt than they repaid. As a result, the first quarter of this year saw new debt rise to 2.7 billion, while savings levels dropped to an all time low.

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.  In Q1 2009, savings levels hit 14 billion – the lowest level since the research was first commissioned nine years ago.

As a nation we are now borrowing 19p for every pound saved.  This is in stark comparison to the second half of 2008 which saw consumers fight the recessionary doom and gloom by concentrating on clearing their debts, with 1.76 of debt repaid for every pound saved. 

David Elms, Chief Executive of Unbiased.co.uk, comments: “The financial turmoil of 2008 prompted a dramatic retreat from savings in favour of repaying personal debt.  The first quarter of 2009, in contrast, has seen consumers going back to ‘the old ways’ as they shift back into borrowing.  The drop in savings could of course be an indication that consumer faith in savings returns and the low interest rates are still preventing people from utilising savings accounts. And the worry has to be that people may be keeping their cash where they can see it; in current accounts or in their wallet!

“After the relentless financial gloom of last year, the public mood seems to be changing with financial forecasters spouting optimism over Britain's economic prospects.  However, though this is certainly a positive development, it is vital for consumers to continue nurturing their financial position. Anyone with financial concerns should seek professional advice from an independent financial adviser.  Only an IFA will be able to help you strike the best balance between borrowing, saving and other financial aspects.”

Those interested in boosting their savings should visit Unbiased.co.uk and download a 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 by visiting Unbiased.co.uk

Notes to editors

*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.

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ENDS

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

David Elms	Anna Schirmer/Jennifer Comerford/ Anna Moulds
Unbiased.co.uk	Lansons Communications
020 7833 3131	020 7294 3682

To stay connected to Unbiased.co.uk and for up to date news and views you can now follow us on Twitter http://twitter.com/Unbiased_co_uk

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 20^th year, and was set up to promote the benefits of independent financial advice to the consumer. 

Unbiased.co.uk’s product provider sponsors

AEGON Scottish Equitable Plc	Lincoln
Alliance Trust	Lockton
AXA Life	Lutine Assurance Services
Bright Grey	MetLife
BPP	National Savings & Investments
Canada Life Ltd	Norwich Union Life
Cardif Pinnacle	Opinium Research
The Children’s Mutual	Prudential
Clerical Medical Investment	Royal London 360
Friends Provident	Scottish Life
The Hartford	Scottish Widows Plc
Invesco Perpetual	Standard Life Assurance Company
Legal & General	Zurich Intermediary Group

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