You are here: Home - Credit Cards & Loans -

Britain borrows more than £11bn

Written by:

UK consumers amassed over £11.7 bn in debt in the third quarter of this year, research from website has shown.

According to, high interest rates combined with ongoing consumer uncertainty over the impact of the credit crunch have led to consumers using savings to pay for their expenditure. The research also revealed UK savings have dropped by over £11bn in this year’s third quarter. This means that for every pound UK consumers saved during the third quarter of 2007, they borrowed 35 pence.

David Elms, chief executive of, commented: “We have seen a lot of activity in the financial markets in the third quarter of 2007, which marked the beginning of the Northern Rock crisis. Interest rates over the summer were still at a high level of 5.75% and many people will have felt the impact of the credit crunch starting to bite their disposable income.”

He added: “While the high level of borrowing and a drop in savings for this quarter may come as no surprise, it is a worrying development. It is important for people to take control of their finances now to ensure their savings and borrowings remain at a healthy level.” 


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Consumers warned not to underinsure

Seasonal increases offered by some contents insurance policies don’t cover new possessions into the New Year, according to Halifax Home...