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Recession takes its toll as Britons find their ability to save eroded

THE recession has left Britons unable to save, according to new research by unbiased.co.uk.

The professional advice website found that savings decreased by £19bn in July 2008 and have not recovered since, figures show that people are saving just over £16bn after falling from £24bn at the end of 2009. Brits are now borrowing 37p for every pound saved which is a considerable change since mid 2008 when they were repaying £1.67 of their debts for every pound saved.

Debt levels are much higher now but they have dropped since 2009. Overall, Brits are now borrowing just over £6bn which has fallen from £14bn at the end of 2009.

Karen Barrett, chief executive of unbiased.co.uk said: “Brits appear to have started 2010 with a tighter grip on their finances, as they are not borrowing as much as they were in 2009, even though this has resulted in a drop to saving levels.”