Brits saving more and borrowing less, says survey

A new study claims that Brits are now saving more and borrowing less and that for every eight pence saved in the last quarter one pound was saved.

Unbiased.co.uk’s research, which does not include mortgage debt, has found that saving is up £10 billion on the same period last year, while borrowing had dropped by £8 billion.

It was found that consumers in the UK took out nearly £4 billion worth of unsecured debt in the months of May to June 2007.

"It is extremely encouraging to see that savvy consumers are taking advantage of the recent rate hikes with previously unseen record levels of savings now taking place," Unbiased.co.uk chief executive David Elms said.

He continued: "It’s even better that Britons appear to have tightened their belts and are approaching borrowing far more cautiously than in previous months."

The overall savings levels for the second quarter of 2007 stood at £47 million.