Brits focus on debt repayment
British households are continuing to spend their money paying off debts, new figures have revealed.
The statistics from the British Bankers' Association (BBA) found that demand for new loans remains weak. Instead, consumers are aiming to build up savings or pay off existing credit.
According to the BBA, consumer lending dropped by an above-average £300 million in November, while the money paid into banks increased by £1.4 billion.
This means that personal deposits have increased 3.9 per cent annually.
The Office for National Statistics (ONS) also indicated in their recent third quarter report that consumers are using more of their disposable income to clear debt'>clear debts where they have the means to do so.
Kevin Still, director of Eurodebt, said that "this does not reflect the challenges faced by those with reduced disposable income and high levels of unsecured debt."
"Interest rates are typically increasing, thereby extending the repayment period of revolving credit like store cards and credit cards."