- Tuesday, 30 June 2009The number of people seeking
IVA advice could increase as Britons shift back towards borrowing as a result of the 'green shoots of recovery'.
According to unbiased.co.uk, the British population is turning back towards borrowing as a result of 'economic optimism' and the belief that the recession may be coming to an end.
The website stated that while savings hit an all-time low in the first quarter of 2009, new debt stood at £2.7 billion.
The figures show a significant change in consumer behaviour and was, unbiased.co.uk noted, the first time in six months that the population had taken out more debt than it repaid.
Britain is now borrowing 19 pence for every £1 saved, a stark contrast to the £1.76 of debt repaid for every pound saved in the second half of 2008.
David Elms, chief executive of Unbiased.co.uk, said: "The financial turmoil of 2008 prompted a dramatic retreat from savings in favour of repaying personal debt.
"The first quarter of 2009, in contrast, has seen consumers going back to 'the old ways' as they shift back into borrowing."
The shift in focus from debt repayment to borrowing before the recession is deemed over by the government and leading financial institutions could see a rise in the number of people suffering serious financial difficulties in the near future.
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