Consumers are paying debts and saving more
HOUSEHOLDS boosted savings and cut borrowing in the final quarter of 2011 despite the pressures of Christmas, research from ING Direct showed today.
Cash savings rose by an average of £73 in the fourth quarter, following three consecutive quarters of decline.
The extra saving took the median balance in accounts to £1,574. Most of this saving came in October and November, leaving customers with a buffer they could use in December.
Average borrowing on credit cards, hire purchase agreements and personal loans fell 15.4 per cent, or £405, in the three-month period to an average of £2,224 – the lowest level of unsecured borrowing since the survey began three years ago.
“It is good to report an increase in Britons’ savings this quarter and encouraging that so many of them are resolved to make saving a big priority this year,” said ING boss Richard Doe.
“However in the current economic environment whether they can achieve this remains to be seen.”