UK's good savings habits undone by lingering culture of debt (Consumer)

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• Britons save almost £32 billion in three months but for every pound we save, we are borrowing 49 pence
• Visit www.unbiased.co.uk/getsaving to take control of your finances

In the third quarter of 2006, the UK tucked away almost £32 billion according to new figures* from Unbiased.co.uk, the organisation promoting the benefits of independent financial advice. The latest Savings Brake from Unbiased.co.uk (which reveals the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving) reveals that UK consumers saved more than £31.7 billion between July and September 2006. However, despite understanding the importance of saving, consumers are continuing to rely on borrowed money, and for every pound saved are borrowing 49 pence.

David Elms, Chief Executive of Unbiased.co.uk, commented: “Consumers are beginning to sit up and take notice of the increasing calls to save, however they are compromising these positive steps by continuing to borrow money to accommodate spending habits.  Until people take responsibility for their debt then the benefits of saving will be diminished.”

He continued: “It is disappointing that consumer trends are failing to move in the right direction. When we reported on the first quarter of 2006 we saw that UK consumers were borrowing only 18 pence for every pound saved, and there was evidence of a net repayment of debt. However 2006 has seen consumers borrowing 54p and 49p for every pound saved throughout the second and third quarters respectively. This demonstrates that although people are recognising the need to save more they may not be budgeting to avoid taking on new debt.

To take control of your spending and borrowing, claim 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. Visit www.unbiased.co.uk/getsaving or call 0800 085 3250

-ends-

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, AITC and IMA.  With detailed queries on this analysis call Paul Hersey on 01737 342863.

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For further information please contact:

For expert comment or case studies from over 200 media-friendly IFAs, journalists should call unbiased.co.uk’s Media Services hotline on 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 31 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	Lincoln Financial Group
  Abbey	Mortgage Express
  AEGON Scottish Equitable Plc	National Savings & Investments
  Alliance Trust	NatWest Business Banking
  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 Fund Managers Ltd	Webline Limited
  Legal & General	Zurich Intermediary Group
  London Mortgage Company

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