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Britons save as much as they spend

Britons saved almost 32bn in the last three months but for every pound saved they are borrowing 49p, reveals unbiased.co.uk.

Unbiased.co.uk says that UK consumers saved more than 31.7bn between July and September 2006.

However, consumers are continuing to rely on borrowed money, and for every 1 saved are borrowing 49p.

David Elms, chief executive of unbiased.co.uk, says: Consumers are beginning to sit up and take notice of the increasing calls to save, however they are compromising these positive steps by continuing to borrow money to accommodate spending habits.

It is disappointing that consumer trends are failing to move in the right direction.

“When we reported on the first quarter of 2006 we saw that UK consumers were borrowing only 18p for every pound saved, and there was evidence of a net repayment of debt.

However 2006 has seen consumers borrowing 54p and 49p for every pound saved throughout the second and third quarters respectively. This demonstrates that although people are recognising the need to save more they may not be budgeting to avoid taking on new debt.

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