Britons 'borrowing more than ever'

Are shoppers taking a break from credit cards?

For the first time since the height of the early nineties credit boom, Britons are borrowing more money than they are saving.

According to the report's authors, Independent Financial Adviser Promotion (IFAP), Briton's are developing a 'split personality' when it comes to their saving and borrowing habits.

It is alarming to see how levels of non-mortgage debt have taken off over recent years,

David Elms IFAP director

And this is due to get worse during the Christmas season.

This trend will further the case of those that say that Britain is heading for a credit crash.

Savings outstripped

The IFAP research reveals that credit-hungry Britons are currently borrowing £1.09 for every £1 saved.

During the third quarter of 2002 £18bn was saved but £19bn was borrowed at the same time.

Back in the first quarter of 1990, the last time new debt outstripped saving - savings totalled £8.5bn and debt £9.9bn.

Not honest

However, it seems, Britons are not being honest with themselves about their indebtedness.

Nearly eight out of ten people, 77%, claim that they are 'savers', nearly half of these own up to borrowing beyond their mortgage debt, through credit cards and personal loans at the same time.

"It is alarming to see how levels of non-mortgage debt have taken off over recent years, whilst the long-term savings gap has continued to wide, " David Elms IFAP director said.