Consumer debt continues to grow

According to figures recently released in the UK, consumers have been continuing to borrow in 2007, with more borrowing and less saving taking place in the first quarter of this year, but recent interest rate increases are now having a marked effect and causing a spending slow down.

Consumer debt levels in the UK are already sky high, and it doesn't look as though things will be improving, with consumers taking out unsecured loans, mortgages, secured loans and credit cards, totaling over fifteen billion pounds in just the first three months of this year. This equated to around £100 million pounds more than in the last three months of 2006.

An independent UK financial website released the figures earlier this year , showing that borrowing was still on the rise in the UK, and that the number of people saving money has declined. According to industry released figures for the first three months of this year, the british consumer had put aside around thirty seven billion pounds, which reflected a drop of around six billion pounds compared to the last three months of 2006.

One finance industry spokesman said: "Last provided an all time record breaking year for UK savers, with an increase in the amount being saved of nearly 150 billion pounds UK consumers. Personal debt in the UK continues to rise and is set to outstrip saving, as such, all the conscientious effort being made on saving money is being undone by continued increasing usage of credit cards, loans and overdrafts."

Recent research has confirmed that less than fifty percent of consumers are saving enough to fund their retirement adequately and nearly a quarter of the british population fail to save anything at all, which could lead to severe financial problems in later life. Those thought to be most at risk of inadequate funds for the future are the self employed, women, and those with high levels of debt.

 

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