The UK’s previously burgeoning saving pile has begun to diminish as more Brits face up to their huge debt problems.

According to unbiased.co.uk, savings levels fall by over £19bn over the last quarter as Britons pay off a net £23bn of debt.

It says for the first time in eight-year study the nation’s focus shifts towards paying off debt rather than taking out new debt – for every pound saved in the last quarter, the British public also paid off £1.24 of their debt.

New figures from unbiased show that the credit crunch is finally hitting home and worried consumers are taking drastic actions to reduce their debt mountain.

David Elms, chief executive of unbiased, says: “2008 has been a turbulent year in terms of finances and these figures are unprecedented. Britons appear to have taken drastic actions in an attempt to reduce their debt levels. For the first time in our research the nation has actually focused on paying off debt rather than accumulating even more.

“But like everything, this trend has left its mark on consumer finances. With such a focus on paying off debt, the UK savings levels felt the repercussions and dropped to an all time low.”

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