Consumers fall back into spiral of debt, says expert

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www.moneynews.co.uk > Consumers fall back into spiral of debt, says expert

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Consumers fall back into spiral of debt, says expert

According to unbiased.co.uk, people in the UK borrowed 62 pence to each pound they saved in the fourth quarter of 2009, which has given one industry commentator cause to suggest the trend is likely to continue into this year.

Karen Barrett, chief executive of the comparison website, said: "These latest figures highlight that consumers are back to behaving as they did before the onset of the credit crunch, even though the economy is still not back to full strength."

She added that the rate at which people are saving has decreased in the last three years and debts still remain largely unpaid.

Consumers made a total of £71.6 billion in savings last year, which represents a 50 per cent decrease from 2008, while borrowing has gradually increased over a three-year period.

Despite consumers failing to balance their finances, they are also becoming more worried by their guilty purchases.

It was recently reported by uSwitch that 48 per cent of high street customers feel pangs of guilt and 33 per cent hide bought items from their friends and relatives.

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