Nationwide Insolvency Practitioners
  • Home Page
  • About Us
  • News
  • Contact Us

Call FREE Business Rescue Advice: 03003 038284

Request a consultation
  • Liquidation
    • Company Liquidation
    • What is Creditors’ Voluntary Liquidation (CVL)?
    • Members’ Voluntary Liquidation
    • Compulsory Liquidation
  • Administration
    • Company Administration
    • Pre-Pack Administration Process
  • CVA
    • Company Voluntary Arrangements (CVA’s)- The Ultimate Guide
  • HMRC Debt Management
    • HMRC Bailiffs
    • HMRC Arrears
    • HMRC Time-to-Pay Arrangements
    • HMRC Enforcement Notice
  • Winding Up Petitions
  • News
  • Get a Quote
    • Liquidation Quote
    • Administration Quote
    • CVA Quote

Expert Advice 03003 038284

  • Free Advice

Do you need Advice, or want to close your business?

    Your data is secure
    1. Home
    2. News
    3. Savings make way for credit boom

    Savings make way for credit boom

    Employee Smiling Latest News

    News of a collapse in the UK savings ratio and a late, unexpected surge in consumer borrowing suggest that the consumer-driven momentum that has kept the British economy above water since the Brexit vote is veering off-course. This should not come as a shock, however, because it is exactly the desired effect of the Bank of England’s slashed interest rate. The latest credit numbers show £1.7bn was borrowed by households in May (£300m more than had been expected) testify to the effects of cheap money and low yields on saving.

    What effect does this borrowing have?

    The collapse of the savings ratio to 1.7% – the lowest level since 1963, is fairly dramatic, however. As recently as early 2016 it stood at 6.1% and has averaged 9.2% over the last 54 years. The fall in the ratio coincides with a world of sustained consumer confidence and low returns on savings, but it is also indicative of a consumer culture which has been saving less to sustain its spending. The bulk of the UK’s consumer debt is accounted for by mortgages (85%). Due to tougher regulation and increased caution from lenders fluctuations in mortgage borrowing has been relatively subdued and has risen by only 2.8% in the last twelve months. This is suggestive of borrowing that is failing to fund traditional ‘big ticket’ items. If you are worrying about debt or facing creditor pressures, you can read more about it online.

    How will the credit boom affect everyday life?

    It is against the backdrop of inflation and stagnant wage growth in the UK that these figures should raise the most concern. Real household income in the UK fell by 1.4% in the first three months of 2017, following falls of 0.3% in the third quarter of 2016 and 0.4% in the fourth quarter. By dipping more frequently into savings and nest eggs, consumers are making themselves more vulnerable to unexpected costs and sudden economic shifts. Does this indicate that the ‘consumer party’ may be getting out of hand? For the latest financial information and insolvency advice, keep up to date with our news articles.

    Contact the Insolvency experts

    For more information please get in touch with a member of our friendly team. You can call our office directly on 0339203308 or contact us online.

    Categories

    • Bankruptcy
    • Business Rescue
    • COVID-19 Advice
    • Debt Advice
    • Frequently Asked Questions
    • Insolvency
    • Latest News
    • Liquidation
    • Uncategorised

    Accreditations

    Chat with us

    For free expert advice, send us a message and we’ll be in touch

    With a free consultation you will:

    • Find out how to manage creditors
    • Discover your options
    • We’ll figure out the best solution for you
    • Whether Liquidation is the best option

      Your data is secure

      It’s completely free and you have no obligation

      © The Insolvency Experts 2022

      The Insolvency Experts is the trading name of Cowgill Holloway LLP registered at Regency House, 45-53 Chorley New Road, Bolton BL1 4QR and registered in England and Wales with registered number OC316195 with offices in Bolton and Manchester.

      Follow us on our socials

      Legal

      • Privacy Policy
      • Site Map
      • Terms & Conditions

      Call us now

      03003 038284