UK urged to find savings and borrowing balance
20/09/2006
People of Britain are showing commitment to their savings, but need to start proving they have equal devotion to controlling their debt, it has been suggested.
Although individuals are boosting their savings, they are not taking notice of spending and borrowing patterns, according to IFA Promotion (IFAP), the company that promotes the use of independent financial advice.
New research from IFAP indicates that UK consumers saved over £38.6 million between April and June 2006.
However, the organisation suggests that for every pound Brits save, they are borrowing 48 pence.
David Elms, chief executive of IFAP, says: "This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts.
"People are beginning to take heed of repeated calls to start saving, but seem to be eliminating spending and borrowing behaviour from their budgetary considerations."
Mr Elms also warns that any "positive effects" of saving will be cancelled out by people who continue to borrow money, via methods such as credit cards and loans.
A "sensible budgeting mantra" has still not been installed in the British psyche, he concludes.
IFAP's findings follow research by the company last month which revealed eight million Britons enjoy spending their money too much to save.
Although individuals are boosting their savings, they are not taking notice of spending and borrowing patterns, according to IFA Promotion (IFAP), the company that promotes the use of independent financial advice.
New research from IFAP indicates that UK consumers saved over £38.6 million between April and June 2006.
However, the organisation suggests that for every pound Brits save, they are borrowing 48 pence.
David Elms, chief executive of IFAP, says: "This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts.
"People are beginning to take heed of repeated calls to start saving, but seem to be eliminating spending and borrowing behaviour from their budgetary considerations."
Mr Elms also warns that any "positive effects" of saving will be cancelled out by people who continue to borrow money, via methods such as credit cards and loans.
A "sensible budgeting mantra" has still not been installed in the British psyche, he concludes.
IFAP's findings follow research by the company last month which revealed eight million Britons enjoy spending their money too much to save.
