Adults in the UK have reversed their previous financial balance and are now saving £1 for every 10 pence that they borrow, market research from IFA Promotions has claimed.
Borrowing appears to be going out of fashion, with IFA Promotion figures showing that the take-up of new credit has fallen to its lowest level since 2000 so far this year.
The figures compare to the same statistics in June 2005, when the UK was saving 50p for every £1 borrowed.
“The nation appears to be reining in their debt and showing commitment to saving which, overall, is fantastic news to report,” said David Elms of IFA Promotion.
“Now is a period of much economic uncertainty and with a rise in interest rates hotly anticipated, consumers are simply behaving in the way you would expect – avoiding taking on new debts and piling what funds they have into savings.
“What we really need to see is a long-term change in people’s budgeting abilities and sustained financial pragmatism,” he said.
Analysts added that born-again savers should find the best savings account rates to make the most of their new-found prudence.
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