Consumers ’spending less on credit’
Consumers are having to cut down on their spending due to increased personal debts and growing bankruptcy and insolvency rates, according to research.
A new survey from Datamonitor suggests that lending in the credit market dropped by about 4.5 per cent to £207.8 billion last year.
This meant that the adults typically had about £4,522 in outstanding debt, which is a rise of 0.8 per cent.
Financial analyst Maya Imberg told Reuters: “A weaker labour market, combined with high consumer debts and weakened consumer confidence, meant that consumers cut down considerably on spending and aimed to repay more of their debts over 2006.”
The research also found that consumers are going to start looking for cheaper deals with lower rates as they continue to be saddled with debt.
People concerned about the level of their debt, but wishing to investigate an alternative to bankruptcy, may wish to consider an individual voluntary arrangement.
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