October 26, 2007

Cutting back in the UK

Savers in the UK are apparently saving less these days, this is not because they are spending more on buying the latest TV’s or going on big holidays, it is simply because they are feeling the pinch after the interest rate rises this year.

At the same time unsecured borrowing has fallen too, which in this climate is not such a bad thing for the consumers, but the banks are feeling the strain the now. There are reports that suggest even spending on credit cards is falling.

Should this trend continue there could be some serious problems ahead, if consumers cut their spending this can have an affect on retailers etc?

Source [Savings Friend]