According to IFA Promotion, the savings revolution is finally upon us. It says saving figures have reached their highest levels and borrowing figures have tumbled to their lowest since it began its quarterly 'Savings Brake' report in 2001.
New saving is now outweighing new borrowing by the largest ratio this century: for every pound saved we’re borrowing just 27 pence, compared to 69 pence this time last year.
IFA Promotion's analysis of a range of saving and borrowing data reveals evidence of a net repayment of credit card debt and record levels of new savings with banks and building societies, all of which suggests we’re finally beginning to control our borrowing and start saving.
David Elms, chief executive of IFA Promotion, says: 'Increased commitment to regular savings is clearly good news, but it stems far more from recent interest rate moves than any sudden savings epiphany. To avoid a repeat of the last few years of rampant consumer debt and total neglect of saving, we need to see an overall shift in consumers' ability to budget. People need to make the link between their spending, borrowing and saving behaviour and their long-term financial security.'
