Savings looking healthy for 2005

23 March 2005
This could be the year of the saver, with new figures from IFA Promotion indicating that we are currently saving more than we are borrowing.

The independent financial advice organisation has published its Get Saving! report, which reveals that savings are currently outweighing borrowing by the largest ratio since 2001.

However, the organisation urges the figures to be interpreted with caution, as borrowing figures are still high - for every pound we are saving, we are still borrowing 57 pence.

This marks a significant difference with the beginning of last year, when we were actually borrowing more than we were saving - £1.05 pence was being borrowed for every pound saved, on average.

"These figures should be treated with cautious optimism. Although it's good news to see that savings are significantly higher than new borrowing, the saving's brake shows that we are still contradicting ourselves financially," said David Elms, chief executive of IFA Promotion.

"Hopefully 2005 will see a reduction in the high levels of consumer debt that have swept the country in recent years and an increase in regular savers."

New borrowing is still substantial, IFA Promotion emphasises, higher than any time in 2001 and similar to the inflated figures of 2002 and 2003.

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