Brits ‘returning to debt bad habits?’

A significant number of Britons could be dicing with debt as they are returning to their borrowing ways, a study has suggested.

Research carried ou…

A significant number of Britons could be dicing with debt as they are returning to their borrowing ways, a study has suggested.

Research carried out by unbiased.co.uk shows that individuals were taking out 62p for every £1 that they saved in the fourth quarter of 2009.

The professional advice website remarked that this trend looks set to continue through 2010.

In 2008, the portal’s Savings Brake survey found the public to be conscious of their financial predicaments and attempting to repay what they owed.

This, however, has not lasted and the total amount borrowed by Brits in 2009 came to £28.2 billion.

Karen Barrett, chief executive of the company, said that the recession had a dramatic “shock effect” on the public – who were “jolted” into paying their arrears – “but it appears this has failed to affect long-term borrowing and savings habits.”

It was revealed earlier in the week that the government is to introduce new rules in 2011 to protect those who acquire cash from others and cannot pay it back from falling into debt.

By Joe Shervin

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