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Savings booming, but debts take off the gloss

21 September 2006
IFA Promotion (IFAP) has released new figures from the second quarter of 2006 showing that UK residents currently hold a larger savings pot than at any point this century.

However, despite the large rate of savings being accrued, totalling £38.6 million between April and June this year, for every one pound being saved UK consumers are still borrowing 48 pence.

"This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts," commented IFAP chief executive David Elms.

"People are beginning to take heed of repeated calls to start saving but seem to be eliminating spending and borrowing behaviour from their budgetary considerations."

The lack of a savings culture in the UK has come under scrutiny in the press recently and although analysts have commended the move towards redressing the balance, not enough is being done to reduce debts.

"The simple fact is that if we don't stop borrowing money, the positive effects of saving will be negated," Mr Elms added.

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