Abacus Daily Debt News

FLA confirms decline in lending

Britons have been borrowing less money over the last year, statistics from the Finance and Leasing Association (FLA) have confirmed.

Overall lending for the year ending in March experienced a 13 per cent decline - with a total of £58 million being provided.

Secured loans dropped by 67 per cent, although credit card debt could still be a problem for many consumers as this form of finance saw only a three per cent fall.

Head of research and chief economist at the FLA Geraldine Kelly explained that loans are being affected by the providers’ difficulties in accessing funds themselves.

"Overall, consumer finance is still being hit by the downturn," she said, adding: "With a depressed housing market many people are choosing to improve their homes and replace furnishings rather than move house."

Earlier this month, the organisation noted that lenders have been working with borrowers in order to minimise repossessions, with figures for the first quarter of the year similar to the same period in 2008.