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Average individual savings as a result of PPI compensation

It has been revealed that the average amount of savings held by people in Britain has risen by 18 per cent for the first quarter of 2012, largely led by many people having received Payment Protection Insurance (PPI) compensation. With a double dip recession making British individuals more money conscious than ever before, the average savings balance has now risen to £1,858, a gain of £284.

Research conducted by ING Direct bank discovered the rise, which is the first quarterly gain since 2009. ING said that around two million people are set to receive PPI compensation in 2012, and with the average payout having now risen to £2,600, people’s savings are swelling as a result. Unsecured debts are also noting stable levels, with the average debt being owed by households being £2,242. ING said that this was likely to remain the same over the coming months because around 42 per cent of people are using their PPI compensation payments to pay off outstanding monies.

There is currently a lot of uncertainty regarding the economy, and as such, people are less willing to spend money. Poor Christmas sales indicated that many households had cut down on their expenditure, and had less debt at the start of 2012 than they may have had in other years. Meanwhile, the large scale of PPI payments means that it is vital for consumers to make claims if they are eligible, offering some financial aid to many people up and down the country.