BSA calls for more "deleveraging"

29/05/2009

The Building Societies Association (BSA) has predicted a "deleveraging" trend among UK consumers for the year to come.

Speaking today, chief executive of the group Adrian Coles said that greater financial responsibility was to be shown by Brits, due to the recession.

Financial "deleveraging" involves paying back money owed on mortgages, cards and loans in order to avoid getting into unsustainable debt.

A raft of cheap deals available on the high street in the run up to the credit crunch had led to millions of consumers becoming overextended in this way.

However, the financial implications of the recession - with jobs less secure and cheap credit much harder to come by - appears to have led to a change of heart.

Mr Coles said: "Clearly we need to boost savings, we need to reduce debt, we are going to have deleveraging and more debt repayment and a bit of balance in people's financial affairs over the next few years."

Tags; Budgeting Advice, Young Family Finances, Recent Graduate Debt,

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