Consumer debt has soared by an additional £13 billion on the same period last year, as consumer borrowing reaches £22.4 billion in the first three months of 2008.
Unbiased.co.uk has released their Savings Break survey which showed how the credit crunch pinch means that consumer saving has fallen by £11 billion. They report that the savings break (which is the ratio between how much unsecured debt a consumer has compared with their savings) has climbed to 69p borrowed for every pound that is saved.
This is a notable increase from the first quarter of 2007, when this figure stood at 29p, thus showing how the average Brit is struggling with their debt as the cost of living continues to climb.
Chief executive of unbiased.co.uk, David Elms, said: “Consumers are playing double jeopardy – not only increasing the amount they are borrowing, but also reducing the amount they are saving. The early months of the year have traditionally revealed British consumers at their most financially stretched – the worry is that this year the scenario is even more bleak than normal. We have increased our debt two fold since the same time last year – and reduced our savings.”