SUMMARY: According to industry research, borrowing in the UK has decreased and we have now turned to saving more and borrowing less.

Debt reaches 'turning point'. Page 2

By Melinda Varley

According to research company Datamonitor, the average

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Life Insurance News

Briton owed £4,000 in unsecured debt at the end of 2004. There has been an un-level playing field between the ( cheap home insurance ) banks and their customers and the rights of customers need to be strengthened.

The Chief Executive of IFA Promotion, commented: "The nation appears to be reining in ( life insurance quotes ) their debt and showing commitment to saving which, overall, is fantastic news to report. At first glance, it seems that consumers have started to develop joined up thinking when it comes to their budgeting behaviour, making the link between their spending, borrowing, saving and long term financial security, but this may not be entirely the case.

"Now is a period of much economic uncertainty and with a rise in interest rates hotly anticipated, consumers are simply behaving in the way you would expect - avoiding taking on new ( life insurance quotations ) debts and piling what funds they have into savings. What we really need to see is a long-term change in people's budgeting abilities and sustained financial pragmatism," he said.

Evidence of a net repayment of secured debt, amounting to over £7 billion this year seems largely responsible for this change in our budgeting behaviour. However, we are also taking on far ( secured loans ) less in terms of new borrowing with just a fifth of what we were at the end of 2005, and only a third of what we were this time last year.

Levels of new saving have remained consistently high for the past year. On the whole, the financial restraint of the UK consumer is much improved. Especially when you consider ( life insurance quotes ) that less than three years ago, we were actually borrowing more than we were saving - £1.28 borrowed for every pound saved.

Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it. Loans may be secured on your home or other property. Think carefully before securing other debts against your home.