People are saving ten times as much as they are borrowing on credit cards, overdrafts and loans, according to new industry figures.

A report by IFA Promotion (independent financial advisors) showed people borrowed just 10 pence compared with every £1 saved in the first three months of 2006.

This is a vast improvement on the 52 pence of debt accumulated for every £1 saved during the same period last year.

David Elms, chief executive of IFA Promotion, commented: "The nation appears to be reining in their debt and showing commitment to saving which, overall, is fantastic news to report."

But he warned that the apparent improvement in budgeting behaviour may not be accurate and it will have be considered over the long term.

"Now is a period of much economic uncertainty and with a rise in interest rates hotly anticipated, consumers are simply behaving in the way you would expect - avoiding taking on new debts and piling what funds they have into savings. What we really need to see is a long-term change in people's budgeting abilities and sustained financial pragmatism."