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Consumers paying off their debts in the recession according to latest ABI research

Despite the continuing recession, more people are tackling their debts, according to research published today by the ABI. 

 

The ABI's latest Savings and Protection survey, for the third quarter of 2009, highlights that:

  • People are paying off their debts, many at a faster rate. A third of people say that they had started paying off their non-mortgage debt, such as credit cards, or had increased the rate of repayment, compared to just over 25% in the previous quarter.
  • Property is seen as the best long-term investment for over half - 54% - of people. This is the highest figure since the survey started a year ago.
  • People were more optimistic about the economic outlook than at any time since the survey began a year ago. Just over half - 52% - expected the economy to improve over the next year. This compares to 36% who felt the same way in the second quarter of the year, and only 12% with similar optimism this time last year.

 

Dr Rebecca Driver, the ABI's Director of Research and Chief Economist, said:

 

"For the long-term health of the economy, it is encouraging that more people are reducing their debts. Increasing confidence in the value of property is also good news for the housing market.

 

"However, we still need to increase saving levels. Some 40% of people are saving too little or nothing at all for their retirement. This is very worrying. The ABI's recently published Savings Manifesto outlines proposals, such as early access to pension saving and bringing forward automatic enrolment into workplace pensions, designed to give savings a much-needed boost."  

 

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Last updated 01/07/2016