Saving cash has taken a back seat compared to paying off debt, new research has revealed.
Independent financial advice experts unbiased.co.uk has found that Brits were repaying £1.76 for every pound saved during the last quarter of last year. Throughout the whole of 2008 consumers repaid £38.6 billion of non-mortgage debt. According to Unbiased this represents the first time Brits have paid off more debt that they took out in savings.
Unbiased.co.uk chief executive David Elms said: ‘The financial turmoil which hit Britain last summer prompted a dramatic retreat from savings in favour of starting to pay down personal debt. This shift is no surprise, but its severity confirms the historic impact of the credit crunch on consumer behaviour and evidence suggests this repayment trend is continuing at pace.’
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