UK Consumers turn away from unsecured borrowing
UK consumers appear to heading warnings regarding personal debt, as applications for unsecured borrowing, including personal loans, seems to be diminishing.
According to recent findings of Alliance & Leicester’s Borrowing Monitor, unsecured borrowing in the UK increased at its slowest rate since 1994, as millions of consumers attempt to reduce their personal debt levels.Despite an increase in mortgage borrowing, lending on credit cards and personal loans has slowed. Director of Retail Banking at Alliance & Leicester, Chris Rhodes, said: “we have entered 2007 with a reduced appetite for borrowing and house buying since last summer.
“Consumers have shown an unprecedented appetite to reduce their unsecured borrowing, while their incomes have continued to grow and interest costs on their unsecured borrowings have fallen. This will take some of the sting out of the latest increase in base rates.”
