Every dark cloud, they say, has a silver lining. Not many of us would have expected the economic slump to beget positives. So, the recent news item from the CBI did come as a surprise; a pleasant one at that! Statistics from the Bank of England suggest that consumers are working diligently towards paying off their debts, while increasing their savings simultaneously. The fluctuating economy and the ensuing uncertainty clearly has driven the record 309 million pounds unsecured debt repayment, a significant chunk of which is credit card payments. The ‘belt-tightening’ measure adopted by consumers is a heartening step taken towards a better, more stable future.

Figures from the ‘Office for National Statistics’ reveal that the household savings rate has grown from 3.9 percent to 5.6 percent in the second financial quarter. In simpler terms, consumers have switched to the savings mode to see through the hard times and set the tone for more carefully planned household budgets that would make sure they are not caught off guard the next time around.

Do you like this post? Tell us what you think of it. We value your comments.

Tags: Credit, crisis, debt repayment, economic slump

:: :: :: :: :: ::

This entry was posted on Wednesday, September 30th, 2009 at 8:41 am and is filed under Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.