Consumers are saving less and borrowing more
UK consumers are saving and investing less and increasing their borrowing, a new survey has found.
According to the latest data from Hargreaves Lansdown, the cost of living crisis has caused more than a third of Brits to cut back on their savings or stop saving altogether. One fifth have either reduced or stopped investing.
Meanwhile, one in seven have started borrowing money for the first time, or have begun to borrow more.
“Rising prices have taken a real toll on saving, investing and debt,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.
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“More than a third of people have either cut back on saving or stopped altogether, while a fifth have cut investments or stopped, and one in seven are borrowing for the first time – or borrowing more. However, there’s a significant chunk of people who are bucking these trends.”
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Coles pointed out that almost one quarter (24 per cent) of consumers have either started saving for the first time or are saving more. One in eight are either investing for the first time or investing more than they did before the cost-of-living crisis. And 25 per cent of consumers have stopped borrowing.
Women are more likely to have cut back on saving than men, and they are also more likely to be borrowing more than before the crisis. Coles said that this was due to the fact that women tend to earn less than men, so the cost-of-living crisis has hit them harder.
A rising number of young people have started borrowing for the first time, although 13 per cent of consumers aged 18-34 told Hargreaves Lansdown that they have cut back on borrowing.
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