Abacus Daily Debt News

People in debt ‘being careful with spending’

Rising unemployment and lower average earnings could be causing people with debt management issues to be much more careful with their spending patterns, one expert has suggested.

Head of research and chief economist at the Finance & Leasing Association Geraldine Kilkelly said that in-store credit is the only form of lending to buck the trend.

She stated: “Store installment credit allows customers to borrow in a very controlled way for a particular purchase, with repayments being easily planned within their household budget.”

Her comments follow the release of figures by the organisation showing that overall consumer credit provided by its members has fallen by 18 per cent.

A lack of liquidity across a number of markets has affected access to financing, with secured loans exhibiting an 85 per cent drop.

This follows a recent report by NS&I that found people are putting aside more money a month now than at any point since the company began its annual survey.

By Francis Finch