Britons getting back into debt, figures show

17/09/2009

After reining in borrowing levels over recent months, Britons are now looking to get a little further into debt, newly-released figures show.

Research carried out by Unbiased.co.uk found that some £5.5 billion was borrowed over the second quarter of 2009.

This is almost twice the amount borrowed in the pervious three-month period, suggesting that many consumers are now getting further into the red, although the study also found that, for every 26 pence bring borrowed, £1 is being put aside for the future.

Announcing the findings, the website's chief executive David Elms said: "The financial turmoil of 2008 prompted a dramatic retreat from savings in favour of repaying personal debt.

"The first half of 2009, in contrast, has seen consumers head back down the debt path as they shift back into borrowing. However, it is encouraging to see that Brits are beginning to save again, despite the low interest rate environment."

Just last week, a poll carried out by Scottish Widows found that two in three Britons remain downbeat about the state of the economy, with 37 per cent of those polled admitting to being concerned about day-to-day money matters.

Tags; Debt Management and Banking,

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