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A recent study has revealed that a record number of consumers have selected to remunerate their debts relatively than obtain any more loans or save money. A lot of these debts are unsecured loans in the form of credit cards and personal loans which large figures of people have incurred before the recession.

In the midst of the low interest rate that comes with mortgage and other secured and unsecured loans, UK consumers are still choosing to go for compensating for their debts than take advantage of it.

Revelations from the Building Societies Association (BSA) that a total of more than £900 million have been lost from the balance sheet of numerous building societiesin October 2009. October 2009 also showed that savers have withdrawn from their savings that totaled more than £1.2b.

This year, the month of October has seen turning points with regards to changes in consumer spending and borrowing. Institutions that have guarantees from the government have also become tough competitors for private savings organizations.

Even if the figure of consumer saving fell considerably, borrowing of unsecured loans such as mortgage loans grew more than figures of 57,000.

This comes to no shock for experts within the financial circle as many say that consumers would not take part in saving their money where they will not acquire as greatly as they used to because of the current low interest rate level and just pay their debts in the meantime.

Bank and government regulations also affected savings fund given that a lot of banks have started issuing less loans.

Besides paying off debts and loans, other things like job losses and salaries not getting any higher are discouraging consumers, leaving them with lesser alternative for maintaining or building a savings account. Even though there are reports of an economy bouncing back, consumer confidence is reported to still decline.

Younger people have a different dilemma to care about however. University graduates in particular, are having problems paying off their student loans after they graduated.

The majority of these graduates are supposed to have started accumulating debts from their student loans after 1998 and most of them are either underemployed or unemployed.

The usual mechanics for paying ones student loans is when a graduate starts earning an annual income of £15,000. Half of these graduates are not able to get hold of this and have to settle for low paying jobs such as restaurant staff, cleaners, labourers, etc.

In spite of this news, there’s still a soar in enrollment in universities this year and younger people are still hopeful they could acquire a job that is paralleled with their degree. Not having a degree also put a person at a disadvantage in terms of qualifying for a better career.