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UK loan rates slow debts

14 June 2005

Brits are reducing their debts and lowering borrowing levels, according to a survey by IFA promotion

Figures show that borrowing has fallen to the lowest level since 2001, suggesting that less Brits are willing to live in debt.

The quarterly report by IFA reveals a 44 per cent reduction in debt levels compared to last year's figures, with a particular drop in credit card debt.

However, despite this decrease, there has been no increase in savings and the figures show Brits are still borrowing 55 pence for every pound they save.

David Elms, chief executive of IFA Promotion, commented: "Falling debt levels is always going to be good news but we would really like to see a big commitment to regular savings.

"People are cutting back on their bad financial habits but they need to take some positive steps if they are going to have a financial secure future."

Mr Elms urges potential savers to visit a local independent financial adviser to discuss the most effective options to get high returns on their investments.