Family debt has doubled in one year as borrowers take more and save less
'Double jeopardy': Fewer families put money aside for a rainy day
The amount of money borrowed by families has more than doubled over the last year, research revealed yesterday.
Borrowers are playing 'double jeopardy' with their finances, taking larger loans but saving less, according to the report from financial advice service Unbiased.co.uk.
Between January and March, nearly £23 billion was borrowed, compared to just £9.6billion in the same period last year.
This includes personal loans, credit cards and store cards, but not mortgages.
Cash set aside for a rainy day has dropped over the last year from £33.2billion to £32.7billion.
David Elms, chief executive of Unbiased.co.uk, said this is a 'turbulent' year for families faced with soaring bills.
He added: 'The early months of the year have traditionally revealed British consumers at their most financially stretched.
'The worry is that this year the scenario is even more bleak than normal.'
Unbiased also calculated the 'savings brake' - the ratio of borrowings to savings. It found 69p is borrowed for every £1 that is saved, compared to 29p per £1 last year.
