Please select a service we provide from the menu.
Login to retrieve or track an existing case.
Consumers switch to debt reduction due to financial turmoil
17/04/2009
New figures from Unbiased.co.uk have revealed how 2008 saw British consumers, including Northern Ireland (NI) residents, switch from saving to debt repayment as the credit crunch took hold of the economy.
Savings rose to a high of £36 billion in the first half of the year as 66p was borrowed for every pound saved, but this changed later in the year as savings plummeted to £19 billion, with £1.76 repaid for every pound saved.
Explaining the figures, David Elms, the chief executive of Unbiased.co.uk, said last summer's financial instability reshaped the mindset of Brits into getting rid of personal debt instead of saving.
"This shift itself is no surprise, but its severity confirms the historic impact of the credit crunch on consumer behaviour and evidence suggests this repayment trend is continuing at pace," he said.
He went on to state that "an awful lot of consumer fear and confusion" exists and advised getting in touch with professionals such as a solicitor or independent financial adviser to discuss available options.
A BBC Radio 4 investigation recently stated that NI was one of the regions worst affected by the economic recession.
Lynette French, Head of the Debt recovery department of Wilson Nesbitt Solicitors, commented that "business owners should respond to this emerging mentality among debtors to see if they can recover any of their outstanding debts from the last six years, and should consider instructing a specialist solicitor firm to handle the debt recovery for them."
Contact us for legal advice
Savings rose to a high of £36 billion in the first half of the year as 66p was borrowed for every pound saved, but this changed later in the year as savings plummeted to £19 billion, with £1.76 repaid for every pound saved.
Explaining the figures, David Elms, the chief executive of Unbiased.co.uk, said last summer's financial instability reshaped the mindset of Brits into getting rid of personal debt instead of saving.
"This shift itself is no surprise, but its severity confirms the historic impact of the credit crunch on consumer behaviour and evidence suggests this repayment trend is continuing at pace," he said.
He went on to state that "an awful lot of consumer fear and confusion" exists and advised getting in touch with professionals such as a solicitor or independent financial adviser to discuss available options.
A BBC Radio 4 investigation recently stated that NI was one of the regions worst affected by the economic recession.
Lynette French, Head of the Debt recovery department of Wilson Nesbitt Solicitors, commented that "business owners should respond to this emerging mentality among debtors to see if they can recover any of their outstanding debts from the last six years, and should consider instructing a specialist solicitor firm to handle the debt recovery for them."
Contact us for legal advice
Bookmarks
