 The appetite for debt is showing signs of slowing |
Consumers in the UK are becoming more prudent when it comes to getting into debt, according to financial advisers. Figures from IFA Promotion show that during the three months to the end of June, people borrowed an average of 61 pence for every �1 they saved.
This was the lowest ratio since the organisation first began tracking the figures two years ago.
In the previous quarter, consumers borrowed an average of 95 pence for every �1 put into savings.
Rates impact
The amount people borrowed through unsecured loans, overdrafts and credit cards fell to �18.75bn during the second quarter of the year, said IFA Promotion.
This compares with �20.15bn during the previous quarter.
During the third quarter of 2003, people in the UK borrowed �1.15 for every �1 they saved.
"We've seen a marked upturn in new savings this year compared to the same period last year and the year before," said David Elms, chief executive of IFA Promotion.
"Interest rate rises early in the year clearly had an impact on our savings behaviour, so it will be interesting to see the effect of recent rises."
The group of financial advisers said it was too early to tell whether the cautious mood would continue or whether the end of the current wave of interest rate rises would tempt people back into borrowing.
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Interest rate rises early in the year clearly had an impact on our savings behaviour 
