Personal debt incurred by Britons in the form of loans and other borrowings is on the rise.
This trend is especially worrying in light of the economic uncertainty that is still evident in the international and domestic financial markets.
It has been pointed out by Credit Action, a money education charity, that people are paying back an incredibly high amount of money in the form of personal debt.
Jo Parsley, advocacy and media officer for Credit Action, said: "A nation of out of control borrowers is not good for UK consumers or the economy. Whether consumers are in debt or not, they still need to spend, but the key is to do so within their means."
She said that the base rate being frozen at its historically low 0.5 per cent is making saving look less attractive to workers in the UK. On top of this, insecurity related to jobs was spurring on employees to strive to pay back their debts, Ms Parsley added.
Her comments follow in the wake of recent findings from the financial advice website Unbiased.co.uk, which revealed that people were putting away relatively low amounts money into savings accounts.
For every pound saved, Britons were paying back seven pence worth of debt. This trend had seen savings decrease by £7 billion from the first to the second quarter of 2010, claimed the portal.
However, recent statistics published by the Confederation of British Industry (CBI) indicate that sale volumes in high street shops improved for the second consecutive month in August.
In response to the CBI's survey, 53 per cent of retailers reported that sales in high street shops had increased in the first two weeks of August. In contrast, only 18 per cent of sellers complained that they has seen sales fall in the same time period.  |
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