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Brits 'starting to borrow heavily again'

By Sarah Engle, Thu 1 Apr 2010 - Published in Loans

People in the UK seem to be turning their backs on repaying debts and are returning to borrowing, it has been claimed.

A new study by professional advice website unbiased.co.uk found that Brits were borrowing 62 pence for every pound they saved in the last quarter of 2009 and predicted that this trend is set to continue for the rest of this year.

The research also showed that the UK was attempting to pay down its debts at the end of 2008, with £1.68 being repaid for every pound people saved, although by the start of 2009 they had started to borrow 13 pence for each saved pound.

Karen Barrett, chief executive of unbiased.co.uk, said: "These latest figures highlight that consumers are back behaving as they did before the onset of the credit crunch, even though the economy is still not back to full strength."

A recent survey by Santander Current Accounts found that 81 per cent of Brits are still reducing the amount they spend on day-to-day living because of the recession.