Brits Determined To Wipe Off Their Debts

Tue, 19 May 2009

An increasing number of Britons are trying harder than ever to pay off their debts, a credit expert has claimed.

According to credit reference agency Equifax, new figures from the UK payment's association APACS which indicated that people are repaying more than they are borrowing, suggests that UK consumers are making a concerted effort to reduce their debts .

The latest APACS statistics showed that gross credit card lending in the first quarter of 2009 stood at £30.3 billion, while repayments during the same period amounted to £29.6 billion.

Neil Munroe, external affairs director at Equifax, noted that the economic recession is causing more Brits to try and reduce the amount of money they owe, as redundancy fears continue to grow.

"Maybe there is an expectation that their job may not be as secure as it was and therefore people don't want to be caught out with no job and [high] borrowing still," he explained.

Mr Munroe added that debt worries could also be an explanation for the increased popularity of debit cards as a method of payment .

"People are moving to using what they know they have rather than borrowing on the basis that they have to pay it back later," he said.

Latest figures from the Bank of England show that consumer lending has fallen by 2.2 per cent in the last 12 months, leaving total UK personal debt at £1,495 billion.
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