British consumers amassed a mammoth £80 billion in loans, credit cards and other credit products throughout the course of 2007, suggests a new report.
One of the UK’s leading financial trends websites has revealed that people within the UK borrowed approximately 50p for every pound that was saved in 2007, representing an increase of approximately 10% faired against the year previous.
The study also reveals that although gross borrowing had increased to a record high for the 12-month period, gross savings had also increased, with Brits reserving short of £150 billion through savings accounts, bonds and ISA’s.
Commenting on the findings one IFA stated that although consumers were certainly more eager to save their hard earned cash during 2007, the level at which loans and other credit products were acquired, and even the individual amounts which had been borrowed, still remains something of a concern.
The British public need to start taking a more responsible approach to buying credit, especially when you consider the number of people who are collapsing under the weight of their personal debts. The trick is for consumers to strike a balance between the act of saving their money, and spending it through credit.
