Economic optimism `leads Brits back to debt`

Research from Unbiased.co.uk suggests that Britons are becoming more confident about borrowing as `green shoots of recovery` start to appear. The first quarter of 2009 saw £2.7 billion of new debt taken out, with Britain`s savings levels sinking to £14 billion.

Britons are now borrowing 19p for every pound saved, which differs greatly from the second half of 2008, which saw many people concentrating on clearing their debts to protect themselves against the recession.

David Elms, Chief Executive of Unbiased.co.uk, said: "The financial turmoil of 2008 prompted a dramatic retreat from savings in favour of repaying personal debt. The first quarter of 2009, in contrast, has seen consumers going back to `the old ways` as they shift back into borrowing."

He went on to say that: "Anyone with financial concerns should seek professional advice from an independent financial adviser."

A debt expert for Gregory Pennington said: "It is important that people don`t borrow more than they can afford to pay back.

"When used correctly, credit can be a perfectly reasonable way to raise extra money. However, debt can gather interest more quickly than many people realise and would-be borrowers should always think ahead and ask themselves if their financial circumstances are likely to change and prevent them from repaying the debt."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.