Savings see a marked rise as debt repayments slow

09 Jun 2011

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, the professional advice website

Research from, 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'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, 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"


* Research conducted by Purple Market Research on behalf of

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, 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

About, the professional advice website

The 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, fulfilled around 450,000 searches for local, professional advice. 

Unbiased Ltd (owned by IFA Promotion Ltd) promotes the benefits of independent financial advice to consumers.  Unbiased Ltd is sponsored by the following companies:

AEGON                                                 Legal & General

Alliance Trust                                        Lockton

Aviva                                                   MetLife

AXA Life                                               Opinium Research

Bright Grey                                           Prudential

Canada Life Ltd                                    Royal London 360°

Clerical Medical Investment                    Schroders

Franklin Templeton Investments             Scottish Life

Friends Provident                                  Scottish Widows Plc

ICM Research                                       Standard Life Assurance Company

Invesco Perpetual                                 Sun Life Financial of Canada

J.P. Morgan Asset Management

Registered the consumer brand of Unbiased Ltd, 117 Farringdon Road, London, EC1R 3BX. Registered in England: No. 06775878

Category: Savings & Investments Tagged:

More press releases on Savings & Investments