July 30, 2008
Fall in personal borrowing figures
The increase in the cost of food, petrol and fuel is causing individuals and families to adopt even more financial belt tightening measures. As a result there has been a fall in the amount that is being borrowed in the form of unsecured loans and credit.
The British Bankers Association has revealed that UK consumers only borrowed a total of £0.3 billion in June ,which compares with the £0.4 billion that was spent in May.
Personal borrowing in the form of credit cards and loans shows no sign of increasing in the near future and households are facing serious difficulties if they fail to regulate their daily expenditure. Unfortunately, the credit crunch is altering the financial behaviour of a significant number of households.
A representative of the British Bankers Association stated that people are currently attempting to trim their debts and increase their savings. However, the current economic situation is hampering their best efforts.