Savings levels surge as rate of paying backdebt slows at the start of 2011We now pay back 7p of debt for every pound saved during Q1 2011For help with personal finances, look for an independent financial adviser atunbiased.co.uk, the professional advice website
Research from unbiased.co.uk, the professional advice website, shows that Brits made a concerted effort with their savings in the first quarter of this year, with a notable rise in the level of money being squirreled away, the highest increase since Q2 2009. At the same time, the rate of paying back our debts has slowed from a year ago (£1.8 billion in Q1 compared to £2.4 billion in Q4 2010).
Savings Break 9th June 2011
These figures are part of unbiased.co.uk's Savings Brake* research, which reveals a quarter by quarter ratio changes of how much we are borrowing (including unsecured borrowing andequity releasebut excluding mortgages) compared with how much we are saving.
While it's good news that debt repayments still outweigh current borrowings, a phenomenon first seen back in Q3 of 2008, the report reveals the amount we pay back on our debts is the lowest since Q3 2009.
Pence borrower per pound saved
Commenting on the figures Karen Barrett, Chief Executive of unbiased.co.uk, said "It is extremely encouraging to see the level of savings increase at the start of this year and it's certainly an interesting turnaround from the previous quarter. We have to ask why people are saving more but paying off less debt? It seems that a rainy day fund is proving more essential now than it has ever been – with rising inflation, a looming interest rate rise and more job losses it’s no surprise that people are concerned and comforted by having cash to hand and accessible. Hopefully this is not just a blip we are seeing in savings fuelled by recent redundancy payments and low consumer confidence.
"An IFA can advise you on striking the best balance between borrowing and saving, as well as looking at your overall financial position and recommending products from the whole of the market. You can carry out a free and confidential search to find an independent financial adviser near you by visiting unbiased.co.uk."
* Research conducted by Purple Market Research on behalf of unbiased.co.uk.
Source: Bank of England, ABCUL, ABI, IMA.
Please note: previously the Savings Brake research was conducted by Paul Hersey, RAKM, on behalf of unbiased.couk. Due to a change of research company, the methodology has changed. All stats in this press release have been calculated by Purple Market Research; therefore data is now only available from Q1 2009 onwards.
Karen Barrett, Chief Executive, unbiased.co.uk: 020 7833 3131
Anna Schirmer/Lisa Grando/Emily Falla, Lansons Communications: 020 7294 3682
For expert commentary or case studies from over 150 media-friendly IFAs, journalists should visitwww.unbiased.co.uk/bluebook.
About unbiased.co.uk, the professional advice website
The unbiased.co.uk portal is a free and confidential UK-wide search matching consumers with local professional advisers: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is currently inviting registrations for its ‘find an accountant’service. These searches enable consumers to find professional advisers by postcode, area of specialism, qualification and payment method. In 2010, unbiased.co.uk fulfilled around 450,000 searches for local, professional advice.
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