Link: http://www.moneymatchmaker.com

A new study has indicated that the level of debt in the UK is falling by less than the amount being saved.

The figures from consumer website unbiased.co.uk revealed that in the third quarter of this year, the level of debt dropped by only £1 billion, whereas the amount of savings fell by £6 billion to £13 billion.

At the same time, the total amount of debt - £4 billion - is double the level at the start of last year, creating the highest ever borrowing to savings ratio of 32p per pound.

An industry debt expert said: "After the dramatic retreat from savings in favour of paying off personal debt in the first half of 2008, consumers are now slipping back into old habits, by borrowing around a third of what they save."

Such a situation may leave some people in a situation where a debt consolidation loan could be required to enable them to lower their repayments.

Martin Bamford of chartered financial planners Informed Choice argued that 2010 will see family budgets stretched even more, with the second half of the year being particularly hard due to higher unemployment, taxes and interest rates.