Debt management needs could rise with economic recovery
Debt management needs could rise with economic recovery
Tuesday 30th June 2009
That is according to unbiased.co.uk which suggests that the population's return to borrowing is due to 'economic optimism' concerning the end of the recession.
The increase in borrowing may well see a rise in the number of people seeking debt management advice as a result of misguided sentiment that economic recovery has arrived.
People may yet suffer further economic hardship. Borrowing would most likely only further compound such difficulties.
Unbiased.co.uk found that new debt in the first quarter of 2009 stood at £2.7 billion.
In contrast, savings in the same period were £14 billion – an all time low.
The first quarter figures for 2009 also showed that for the first time in six months, the British public had taken out more debt than it had repaid.
It is this shift in consumer attitude that could herald the increase in debt management.
David Elms, chief executive of Unbiased.co.uk, said: "The financial turmoil of 2008 prompted a dramatic retreat from savings in favour of repaying personal debt.
"The first quarter of 2009, in contrast, has seen consumers going back to 'the old ways' as they shift back into borrowing."
Britain's population now borrows 19 pence for every £1 it saves.
In the second half of 2008, £1.76 of debt was repaid for every pound saved.
News article brought to you by Debt1 – UK debt management specialists.
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