IVA & Debt Consolidation Advice

Although the amount of money being saved by Brits is growing to record levels, a body of financial advisers has warned that we still need to keep an eye on debt.

According to IFA Promotion, debt and spending levels are not going down as savings go up, suggesting that much of what is being saved is in fact borrowed cash.

The group produces a Saving's Brake, which shows the value of new debt (not including mortgages) in comparison to the amount of money being saved.

Between April and June 2006, despite saving more than £38.6 million, UK consumers borrowed 48 pence for every pound saved.

"This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts," said David Elms, chief executive of IFA Promotion.

"People are beginning to take heed of repeated calls to start saving but seem to be eliminating spending and borrowing behaviour from their budgetary considerations. The simple fact is that if we don't stop borrowing money, the positive effects of saving will be negated."

In the second quarter of 2006, a total of £18,571 was borrowed by UK consumers not including mortgages, according to IFA Promotion figures.