Brits avoid borrowing in credit crunch

01/05/2009

Three-quarters of Britons have not borrowed extra since last August, as concerns about debt escalate.

This is the main finding of new research from Fairinvestment.co.uk, which suggested that tightened credit criteria from lenders was also behind the trend.

The site's survey found surprisingly low levels of different types of borrowing - with just seven per cent taking out an extra credit card and five per cent a personal loan over recent months.

This is despite the worsening economy and rising unemployment, both of which have stretched budgets up and down the country.

Commenting on the statistics, chartered financial planner at Fairinvestment.co.uk, Sharon Bratley said: "The fact that the majority of people are steering clear of getting into further debt is encouraging, and a sign of the changing economic climate.

"Not long ago, people thought nothing of getting another loan or credit card, as credit was easier to secure, but as lenders tighten their criteria it seems people are taking note. For those who are considering taking out a loan or credit card, it is important to gather information and compare the whole market to make sure they are getting the best available deal for their circumstances."

Fairinvestment.co.uk also found that a hard core of three per cent of the British public had taken out a last-resort pay day loan - a very high-interest but easy to apply for form of credit.

Tags; Budgeting Advice, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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