Unbiased Unveils Brits Playing Double Jeopardy With Finances

The continuing downturn in the financial markets is seeing a significant number of Britons raiding their savings.

Such is the assertion of Unbiased, where in its latest Savings Brake report it was revealed that a diminishing amount of money was invested into saving accounts. In the firm’s research it was indicated that the amount of money put into such financial products during the first three months of this year stood at 32.7 billion pounds. Such a figure represents a fall of 11 billion pounds from the company’s earlier study during the same period in 2007.

In addition the study also revealed an increase in the amount of borrowing on the part of UK consumers. The first three months of this year saw the amount of credit taken out increase by 22.4 billion pounds. Meanwhile for every pound which was saved during this period of time the amount of money borrowed - not including mortgage debt - stood at 69 pence.

Following taking steps that increase debt and to reduce cash put into savings accounts, it may be possible that consumers find that they are increasingly struggling to manage the various demands on their spending which could include areas such as personal loans, mortgage repayments, credit and store cards and utility bills.

Commenting on the figures, David Elms, chief executive of Unbiased, said: “[This year] has started turbulently for many with regards to their finances. Consumers are playing double jeopardy - not only increasing the amount they are borrowing, but also reducing the amount they are saving. The early months of the year have traditionally revealed British consumers at their most financially stretched - the worry is that this year the scenario is even more bleak than normal. We have increased our debt twofold since the same time last year - and reduced our savings.”

Mr Elms went on to report that the current poor economic outlook is “being made worse by the fact that, as the credit crunch bites, there is less credit around”. Not only are personal loans as a whole becoming more expensive, the Unbiased chief executive also stated that some 10,000 mortgage deals have been withdrawn.

As such, it was stated that it is important for consumers to get a grip on their finances should the firm’s Savings Brake ratio show signs of improvement for the remainder of this year. This, he suggested, means people should start to put cash away for the future and reduce their levels of debt.

For those looking to get on a firm financial footing, applying for debt consolidation might be recommended. In doing so it is possible borrowers can merge numerous demands for payment into a single low-cost repayment leaving them with more disposable income at the end of each month, cash which could then be put into a savings account. This type of loan could also be helpful for those looking to complete mortgage payments quickly, after a recent study by Key Retirement Solutions revealed that the amount of money owed on a property by those over the age of 55 stands at 37,316 pounds per homeowner.

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