A report from IFA Promotion, the Independent Financial Adviser lobby group, has found that borrowing figures are down to their lowest level since 2001. They have found that there has been a 44% drop in new debt levels compared to this time last year, and credit card debt falling for the first time since 1994.
Despite this, there does not seem to be a rise in savings. The report revealed that the amount saved nationally has dropped in the last few months, with half of all savings cancelled out by the new debts borrowers are continuing to take on.
Our view
No surpise as people become more cautious with the last few interest rate rises and the rise in 'headline' job losses.