Recession encourages more saving and less debt

by Richard Kilner

Story link: Recession encourages more saving and less debt

The difficult economic climate is affecting the behaviour of British people towards savings and borrowing, according to research commissioned by database marketing and consumer insight firm KDB.

The survey shows that over half (56%) of Britons intend to cut their borrowing and almost half (45%) intend to bolster their savings, with the young particularly in favour of saving.

Sixty-eight percent of those in the 18-24 age bracket stated their intent to save more, almost double the 37% of 45-54 year olds with the same idea.

However, the 45-54 year olds are most likely to reduce their borrowing (63%), whereas 18-24 year olds are least likely to do so (43%).

In addition, the English are most in favour of saving, followed by the Welsh and then the Scots, with London the capital of saving and East Anglia the weakest area for more saving.

The results echo similar findings by the Nationwide Savings Index in October, which found that the Index was at its highest level since November 2008.

KDB’s chief analyst, Matt Boot, has described the fact that many are planning to reduce borrowing and increase saving as unsurprising.

Boot went on to suggest that by carefully watching consumer behaviour the financial sector would be better able to tailor their offerings to the public.