‘UK saving rates slow as debt levels rise’

During the first quarter of 2006, Britons borrowed 35 pence for every pound they saved, while in the same period of this year UK consumers took on 41 pence in personal debt for every pound set aside, the latest figures demonstrate.

Furthermore, between January and March 2007 Britons accumulated an additional £100 million in personal loans, overdrafts and credit card debt, in comparison with the final three months of last year.

“Personal debt in the UK continues to rise and, as such, all the conscientious effort being made on saving money is being undone by continued increasing usage of credit cards, loans and overdrafts,” said David Elms, Unbiased.co.uk’s chief executive.

Figures from Credit Action put the UK’s debt management burden at more than £1,325 billion at the beginning of this month.