UK Consumers Break Savings Records (Consumer)

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UK CONSUMERS BREAK SAVINGS RECORDS

• Britons saved about £25 billion more in 2006 than 2005
• However for every pound saved they still borrowed 40 pence
• Visit www.unbiased.co.uk/getsaving to take control of your finances and help the UK continue to Get Saving!

UK consumers put a spectacular £136 billion away for a rainy day in 2006, up £25 billion on the previous year, according to new figures* from Unbiased.co.uk, the organisation promoting the benefits of independent financial advice.

However the latest research reveals that despite saving their pennies UK consumers continued to increase their borrowing as well. Unbiased.co.uk’s Savings Brake - which reveals the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving - has dropped significantly – for every pound UK consumers save they are now borrowing only 40 pence, compared to 52 pence during the same period in 2005.

David Elms, Chief Executive of Unbiased.co.uk, commented: “The news that UK consumers are breaking records for saving is very encouraging, but the fact remains that the good work is wasted because debt continues to rise.”

The £39 billion saved between October and December in 2006 represents a 16% increase on the previous quarter, and is the highest quarterly figure of 2006.

Elms continues: “2006 was a record-breaking year for UK savers, but the savings brake ratio still continues to hover around the 40 pence mark which is a far less promising story. Personal debt in the UK continues to rise and, as such, all the conscientious effort being made on the savings side is being undone by continued increasing usage of credit cards, loans and overdrafts.”    

To take control of your spending and borrowing, visit www.unbiased.co.uk/getsaving to download your free copy of Unbiased.co.uk’s 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 www.unbiased.co.uk/getsaving or calling 0800 085 3250.

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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 342863.

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020 7294 3682 or search online at www.unbiased.co.uk/media

1.      Independent Financial Adviser Promotion

Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK, incorporating over 17,000 registered individuals. These individuals hold over 20,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice. 

IFA Promotion is sponsored by 30 leading financial institutions, and in the past 12 months, over 600,000 consumers and businesses used unbiased.co.uk 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

  Aberdeen Asset Management	London Mortgage Company
  Abbey	Lincoln Financial Group
  AEGON Scottish Equitable Plc	Mortgage Express
  Alliance Trust	National Savings & Investments
  AXA Life	New Star Investment Funds
  Bright Grey	Norwich Union Life
  BUPA Health Services	Prudential
  Canada Life Ltd	Scottish Life
  The Children’s Mutual	Scottish Life International
  Clerical Medical Investment	Scottish Widows Plc
  Defaqto	Skandia UK Group
  Friends Provident	Standard Life Assurance Company
  GE Life	UnumProvident
  Invesco Perpetual	Webline Limited
  Legal & General	Zurich Intermediary Group

  Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606

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