Consumers acting ‘conservatively’ and paying down debt.

September 26, 2012

Recent figures from the British Banking Association show that UK consumers are acting ‘conservatively’ by paying off debt, putting money away in savings accounts and reducing their household debt levels.

Although net mortgage debt increased slightly, unsecured loan borrowing contracted by over 3% and cash being deposited into ISA’s increased by nearly 6%.

Other figures released by the BBA showed;

  • Mortgage approvals were down 13%
  • Outstanding unsecured loans are half of what they were in 2007
  • New borrowing on credit cards remains flat at £7.1 billion

The BBA’s statistics director, David Dooks said: “People are acting conservatively in this weak economic environment, maintaining debt repayments and building up deposits, particularly in ISAs.”

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