New consumer borrowing has hit a four year high, as debt levels increased again in Q1 this year by £22bn, while savings rates fell by £11bn, according to research by Unbiased.co.uk.
Its Savings Brake research, which reveals the ratio of how much Britons are borrowing (excluding mortgage debt) contrasted with the amount consumers are saving, shows that for every pound saved during Q1 2008, 69 pence was borrowed. This is a notable increase from 29 pence borrowed against every pound, during Q1 last year. First quarter borrowing is £13bn higher this year than last, despite the credit crunch, the research found. As well as increasing borrowing levels, consumers also reduced savings as the amount added to “rainy day” funds dipped by £11bn to £32.7bn in Q1 of 2008, Unbias...
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