Britain's Borrowings Increase by £11 Billion in 2007

• Consumer borrowing is now at a three-year high
• Debt levels throughout 2007 peaked in Q4 2007
• For every pound saved in the last quarter, the British public owed 52 pence
• Visit www.unbiased.co.uk/getsaving to take control of your finances and help the UK continue to Get Saving!

New figures from Unbiased.co.uk, the Find an Independent Financial Adviser Search, show that over the last year consumer borrowing soared to a three year high of £76.7 billion – an increase of over £11 billion compared to 2006.

Unbiased.co.uk’s Savings Brake* research, which reveals the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving, shows that for every pound UK consumers saved during 2007, they borrowed 52 pence. This is a notable increase from the 49 pence borrowed against every pound in 2006.

Despite the increase in borrowing levels, there was some good news, with savings levels increasing by £12 billion to over £145 billion during 2007.

David Elms, Chief Executive of Unbiased.co.uk, commented: “2007 has been a turbulent year with regards to finances. Not only did we see three base rate rises last year, but we also witnessed the beginning of the so called credit crunch. Consumers no doubt will worry about the impact of the financial markets and the economy on their wallets and it is great to see that savings levels have increased compared to 2006.

“However, our figures also show that consumer borrowing is now at a worryingly high level and it remains doubtful whether we will see a significant improvement in the Savings Brake ratio in 2008. It has never been more important for people to take control of their finances to ensure their savings and borrowings remain at a healthy level.”

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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For further information please contact:

David Elms	Anna Schirmer/Jonathon Grove
Chief Executive	Lansons Communications
Unbiased.co.uk	020 7294 3682
020 7833 3131

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 22,000 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 28 leading financial institutions, and in the past 12 months, over 575,000 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

Abbey for Intermediaries	Lincoln Financial Group
Aberdeen Asset Management	Lutine Assurance Services
AEGON Scottish Equitable Plc	National Savings & Investments
Alliance Trust	New Star Investment Funds
AXA Life	Norwich Union Life
Bright Grey	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
The Hartford	Tomorrow
Invesco Perpetual	Unum
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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