Brits ‘raiding savings’ to pay off debt

The growing number of Britons looking be become debt free is resulting in dwindling saving levels, new research has found.

A survey by Unbiased.co.uk revealed that savings have dropped by over £19 billion to a record low during the last three months as Brits seek to pay off debts totalling £23 billion.

According to the Savings Brake study, the latest figures show that the country is looking to pay off debt rather than borrow more, with £1.24 being paid off for every pound UK consumers saved during the third quarter.

Chief executive of Unbiased.co.uk David Elms described the figures as “unprecedented”.

“Britons appear to have taken drastic actions in an attempt to reduce their debt levels,” he remarked, noting that the trend has “left its mark on consumer finances” in the form of low saving levels.

A recent PricewaterhouseCoopers survey revealed 16 per cent of people are already struggling with debt in the credit crunch, with the average adult owing a total of £40,000.

By Tom Musk