Savings plunge as savers tackle debt mountain

clock •

Britons have sacrificed £19bn of savings in a bid to drastically reduce their debt mountain as the credit crunch bites, research suggests.

Consumers paid off over £23bn more in debt than they took out in borrowing during Q3 2008, according to Unbiased.co.uk's research. However, Britons are surrendering savings to get out of the red with savings levels almost halving over the last quarter to an all time low, from £38.5bn in Q2 to £19.3bn in Q3. For the first time since Unbiased.co.uk's eight-year Savings Brake research began, Britons are paying off debt rather than taking out new debt. It reveals, for every pound UK consumers saved during the third quarter of 2008, they also paid off £1.24 of their debt. This marks a vast...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

By late 2027

Patrick Brusnahan
clock 28 October 2026 • 1 min read
Investment tax relief rises by smallest amount in four years amid recent Budget measures

Investment tax relief rises by smallest amount in four years amid recent Budget measures

Bowmore Financial Planning research

Jack Roach
clock 28 October 2026 • 2 min read
Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read