Saving overtakes borrowing in 2008

Posted: 17 Apr 2009 10:33:17 GMT

The way in which Brits handle their money flipped severely in 2008, research from unbiased.co.uk has shown.

The research paints a picture of a country borrowing 66p for every Pound saved at the beginning of 2008.

Such borrowing levels did ensure that the nation's savings level was high, however, rising to £36 billion in the second quarter of the year.

As the year came to a close though, the average Brit was paying off debt by £1.76 for every Pound saved, reducing overall savings to £19 billion.

David Elms, chief executive of unbiased.co.uk, said: "[Last year] was a year of two halves in terms of people's financial behaviour. The financial turmoil which hit Britain last summer prompted a dramatic retreat from savings in favour of starting to pay down personal debt.

"This shift itself is no surprise, but its severity confirms the historic impact of the credit crunch on consumer behaviour and evidence suggests this repayment trend is continuing at pace."

As Brits remain reluctant to own debt, selling a property may continue to prove difficult, although selling a home online may attract more potential buyers.


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