Savings Increase For the First Time in Twenty Years
Newspapers have been quick to report that Britain is falling into it’s largest personal debt crisis in history. Stories of ‘disaster debts’ and personal bankruptcy have dominated the headlines – stories that are often backed up by sound financial evidence and real statistics.
Take, for example, the ten percent increase in estimated personal insolvencies throughout 2010 – a figure that’s currently being suggested by insolvency group R3. Personal and company insolvency figures are expected to rise throughout the year, marking 2010 as one of Britain’s most financially devastating years.
But alongside the rise in bankruptcies, insolvencies, and debt-related issues is a distinct change in Britain’s attitude to spending. For the first time in twenty years, consumer spending has dropped below savings figures. Families that were once interested in borrowing are now relatively frugal, keeping their income in savings accounts and limiting their spending to essentials only.
It’s been suggested that the rise in savings is a result of large debt repayments and limited financial abilities, although not everyone is behind the idea. Experts suggest that the savings increase could represent a new attitude amongst Britons – one that’s geared towards sensible spending and long-term financial planning.