Britain’s borrowings increase by £11 billion

Over the last year consumer borrowing soared to a three year high of £76.7 billion – an increase of over £11 billion compared to 2006, according to figures from Unbiased.co.uk, the Find an Independent Financial Adviser Search.

Unbiased.co.uk’s Savings Brake research, which reveals the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving, shows that for every pound UK consumers saved during 2007, they borrowed 52 pence. This is a notable increase from the 49 pence borrowed against every pound in 2006.

Despite the increase in borrowing levels, there was some good news, with savings levels increasing by £12 billion to over £145 billion during 2007.

David Elms, Chief Executive of Unbiased.co.uk, commented: “2007 has been a turbulent year with regards to finances. Not only did we see three base rate rises last year, but we also witnessed the beginning of the so called credit crunch. Consumers no doubt will worry about the impact of the financial markets and the economy on their wallets and it is great to see that savings levels have increased compared to 2006.

“However, our figures also show that consumer borrowing is now at a worryingly high level and it remains doubtful whether we will see a significant improvement in the Savings Brake ratio in 2008. 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.”

To take control of your spending and borrowing, visit unbiased.co.uk/getsaving to download your free copy of Unbiased.co.uk’s dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money. You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you by visiting unbiased.co.uk/getsaving or calling 0800 085 3250.