The Office for National Statistics recently looked into saving and borrowing levels in the UK. According the Office for National Statistics
UK households have seen their outgoings surpass their income for the first time in nearly 30 years
At Northern Community Bank we encourage people in Burnley and Pendle to save by providing a safe, free and convenient place to build up saving pots. We know that it is difficult when bills are rising, wages are stagnant, people are on zero hour contracts or unexpected expenses arise. However our account holders tell us by putting a little away, as often as possible, it really does add up to help when life throws up an expense you just didn’t pencil in.
The latest statistics available showed that UK household spent more than they received annually. The last time that this happened was in 1988, however the amount households are overspending far exceed that of 1988; not even before the financial crash of 2008 has the UK hit these levels.
On average, each UK household spent or invested around £900 more than they received in income in 2017; amounting to almost £25 billion. Households’ outgoings last outstripped their income for a whole year in 1988, although the shortfall was much smaller at just £0.3 billion.
The Office for National Statistics pointed out that
To fund this shortfall, households either have to borrow – at which point they could be living beyond their means – or dip into their savings.
As the Money Charity has regularly pointed out over the last few years, saving levels are at their lowest since the 1960’s. This must means a large percentage of UK households are borrowing to cover the short fall.
We know that many turn to high interest lenders for unsecured loans or credit, such as pay day loans, pay weekly stores, doorstep lenders or guarantor loans which can end up costing the borrower eye watering amounts.
Northern Community Bank provide affordable loans for a variety of reasons, with decisions made on affordability. Our staff work tirelessly to assess whether a loan is affordable for a person and tailor a repayment plan that works for the borrower, which includes a small amount to be set aside to build up savings.
This save-as-you-borrow method is unique to Community banks and research has shown that 71% of borrowers at a Community bank go on to be regular savers.
It is good to talk
If you would like to discuss your saving or borrowing needs then contact Northern Community Bank today. We have 5000 adult account holders, with collective savings of £5.9 million and throughout the last 36 years we have enabled the community to access over £47 million in affordable loans.
