News in depth

Changing attitudes to saving and debt

17 March 2007

Warnings over the record levels of debt being taken on by individuals had been prevalent throughout 2006 but it seemed this had now permeated into society’s attitude towards spending and they are now putting away more.

Paul Fincham, senior media relations executive at Halifax, believed that 2007 would be the year of the saver.

“We expect to see the highest savings ratio for over 10 years, with the total amount being put away by people topping the £1trillion mark for the first time. Towards the end of 2006, we started to see the savings habit return and we are expecting 2007 to by seen as the year of the saver.”

With higher interest rates also impacting on people’s pockets, advisers have been seeing a change of attitude, with people starting to tackle their debts.

Simon Chalk, mortgage planner at Mortgage Portfolio Services, commented: “While most of my client base is not heavily indebted, it has been clear those with serviceable levels of debt have been looking to bring this down.”

However, Jennifer Holloway, head of media relations at Skipton BS, believed that while there were people putting more away, there were still those taking on more debt.

“I would say there is a definite trend towards saving more, which backs up the research we did in 2004 and 2005 which said there would be a savings renaissance. However there are always people who will save and those who will get into debt.”