Tighter finances ‘dictating borrowing behaviour’
Increasingly tight household finances are affecting the way in which Brits approach future debt, according to new statistics.
Figures from the Major British Banking Group for April suggest that there was a fall in demand for large debts such as mortgages and scant change elsewhere.
This suggests that Britons maybe tightening their belts or reconsidering current finances rather than taking on further debts.
David Dooks, director of statistics at the British Bankers’ Association (BBA), commented: “Lower mortgage demand, weaker deposit growth and little change in personal loans or credit card borrowing all point to people paying more attention to their finances.
“People are using money from their accounts instead of borrowing to meet their spending needs.”
Earlier this month the BBA stated that May’s interest rate rise would put further pressure on family budgets, while recommending that consumers take a “good hard look” at their finances to safeguard their future.
Consumers with outstanding repayments to several creditors may wish to take out a debt consolidation loan to help sort their finances.
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