New Figures Show Saving Is In Style For Christmas

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·          Saving outstrips borrowing for the second quarter running, but budgeting is for life not just for Christmas, says IFA Promotion

·          For every pound saved we are borrowing 83 pence

New figures from IFA Promotion*, the organisation that promotes the benefits of independent financial advice, show savings are outstripping borrowing for the second quarter running. The rise in interest rates has prompted an upsurge in savings and, as the many pre-Christmas sales show, we don’t seem to be splurging on the high street as much this year.

However IFA Promotion’s ‘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 we are saving, we are still borrowing 83 pence. Therefore the majority of the amount we are saving is still negated by the new debt we are continuing to take on.

The figures also showed that:

·          In comparison, at the same time of year in 2003 we borrowed 124 pence for every pound we saved

·          Savings for this time of year are higher than they have been for the past four years

David Elms, Chief Executive of IFA Promotion, commented, “It’s heartening to see that savings are outstripping new borrowing at this time of year. Interest rate rises and heightened awareness of consumer debt have clearly affected saving and spending patterns. However if people want to make the most of their saving power, and reduce the amount they are borrowing, they should visit a local independent financial adviser who can consider their overall financial position and discuss how they can budget better and boost the return on their savings.”

To help people take control of their spending and borrowing, especially at this expensive time of year, 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.

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 30 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:

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

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

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

2.       Independent Financial Adviser Promotion’s sponsors

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