Spenders are becoming savers
The economic difficulties experienced during the recession have turned some spenders into savers, it has been suggested.
The sudden impact on their wealth for some people was a shock and has prompted them to make sure they do not make the same mistake twice, according to Ed Bowsher, head of consumer finance at lovemoney.com.
He added that in his experience consumers are now “trying not to borrow as much, they are trying to save and they are trying to repair their finances”.
The Bank of England had reported that there had been an increase in the total net lending figures to individuals during December by £1.2 billion. But Mr Bowsher described this rise as a “very modest kick upwards”.
Overall he sees the increase in consumer savings as an indication that people have learned their lessons from the credit crunch and he feels that this increased responsibility towards money is “absolutely the right thing to do”.