Consumers continue to rack up debt
According to recent figures consumers in the UK have been continuing to borrow, with more borrowing and less saving taking place in the first quarter of this year.
Consumer debt levels in the UK are already sky high, and it doesn't look as though things will be improving, with consumers taking out unsecured and secured loans totally over fifteen billion pounds in just the first three months of this year. This equated to around £100 million pounds more than in the last three months of 2006.
An independent financial website released the figures recently, indicating that borrowing was still ride in the UK, and that the number of people saving money has declined. According to the figures the first three months of this year saw Brits put aside around thirty seven billion pounds, which reflected a drop of around six billion pounds compared to the last three months of 2006.
One official stated: "Last year was a record-breaking year for UK savers, with an increase of nearly 150 billion pounds in the amount saved in total by UK consumers, but the 'savings break' ratio has now moved back up above the 40 pence mark. Personal debt in the UK continues to rise and, as such, all the conscientious effort being made on saving money is being undone by continued increasing usage of credit cards, loans and overdrafts."
According to additional research that was carried out by Scottish Widows under fifty percent of consumers are saving enough to fund their retirement adequately, and nearly a quarter of Brits are failing to save anything at all, which could mean real financial problems in later life. Those thought to be most at risk of inadequate funds for the future are the self employed, women, and those with high levels of debt.
Tom Smith
3rd July 2007
More Information:
- General Loan Advice For Managing Debt
Debt is a really easy thing to get stuck in. Even if you are not extravagant monthly costs can spiral out of control, especially if you take your eye off the ball. So what can you do to avoid getting too far into debt and if you are there already how can you get out of it?
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It is easy for debt to get out of control. Student loans, losing your job, becoming ill or any number of other unforeseen events can easily cause debts to mount up.
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Consolidating debt is growing in popularity. The signs of this are everywhere. From television advertisements, to letters in your post box, offers of debt consolidation abound. Debt consolidation is a huge business and the primary reason for new personal loans is debt consolidation.
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Did you know that switching lenders can save you money? Just because you agreed to a loan in the past, doesn’t mean that you have to stick with it forever. Most people stick with the same lender for years and years.
