Debt management ‘still an issue for Brits’

Debt problems are still apparent for many Britons, as newly released figures have revealed that savings levels have dropped, while debt levels have remained stable.

Statistics from unbiased.co.uk have shown that, in the third quarter of 2009, the amount saved fell by £6 billion.

And for the same period, arrears dipped by £1 billion, facts that prompted chief executive of the company Karen Barrett to observe that people are now returning to their old ways.

It was also found that, for every pound saved during this time, 32p was borrowed and Ms Barrett said: “This is creating a serious barrier to a sustained economic recovery.”

She recommended that debtors monitor savings rates and seek counsel from independent financial advisors as only these professionals will be able to assist UK adults in finding the “best balance” between saving, borrowing and financial investments.

Earlier this month, Ed Bowsher of lovemoney.com noted that people will also have trouble putting money away in the new year, as it is likely the base rate will remain at 0.5 per cent for some time.

By Sarah Adie