Consumers Continue To Clear Debts

Thu, 24 Dec 2009

Britons are continuing to focus on saving and paying off debts in the recession, according to new figures.

Data from the British Bankers Association showed that consumer credit fell by £300 million and personal deposits rose by £1.4bn in November.

New spending and repayments on credit cards for the month were both down on last year’s figures, while demand for personal loans was particularly weak.

The BBA said that balances on loans have fallen by £3.6 billion over the year, but during the same time deposits have increased by more than £18bn.

David Dooks, statistics director at the BBA said: "Household priorities are showing up in the November figures. Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances."

The BBA figures come after recent data from the Office for National Statistics showed that the average UK household saved almost £300 a month in the three months to September.

The ONS said that families saved 8.6 per cent of disposable income they earned in the third quarter, up from 7.6 per cent in the previous quarter and the highest household savings ratio recorded since 1998.

In total, households saved £21.4bn over the three months.
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