Borrowing at an all-time high
8th July 2008
New research has revealed that despite the credit-crunch and maybe because of it, borrowing is at an all-time high.
Independent financial advisors unbiased.co.uk, have shown that borrowing is £13 billion higher in the first quarter of 2008 than it was in the same period the year before.
The company said that credit cards and loans are taking precedence over savings accounts. Figures show that for every pound UK consumers saved in the first three months of 2008, they were borrowing 68 pence.
David Elms, chief executive of Unbiased.co.uk, commented: "It has never been more important for people to take control of their finances to ensure their savings and borrowings remain at a healthy level."
Borrowing now stands at £22.4 billion in the first quarter of 2008, despite suggestions of tougher lending criteria.
The Bank of England revealed that credit card borrowing staged its sharpest rise in May for almost two and a half years.