2011 was always going to be a tough year for savers. Inflation, rising unemployment and a struggling economy are all working against the ordinary member of the public - and the last three months have probably been the most difficult time for consumers so far.
These latest findings, spanning the third quarter of 2011 show that over the last three months the ordinary man or woman in the street is worse off by around £300 - when accounting for the fall in savings and the amount added to debts.
It’s also the first time our findings have shown levels of unsecured debt rise in nearly a year and the average savings buffer now stands at a little over one month’s worth of take home pay.
This fall coincides with a 17-year high in unemployment, with those made redundant facing an average of six months out of work.
Bearing this in mind, it’s understandable that many people are planning a more frugal Christmas, cutting down on their spending considerably.
While this may not be great news for the high street, we know from previous research that those relying on plastic to fund Christmas last year were paying off the cards well into 2011. So this more prudent approach could help people avoid this new year financial hangover.
However, the determination amongst Britons to restock their savings remains strong, with four in 10 (39 per cent) stating this as their top financial priority. It will be interesting to see in the next quarterly report if the economic situation allows them to deliver on this.
