Credit Lending Falls As Consumers Choose To Pay Off Debt

The Finance and Leasing Association has revealed consumer lending fell by 6% in 2010 compared to the previous year.  Store card borrowing, a particularly expensive form of borrowing, saw the biggest reduction.

The run up to Christmas, which is traditionally a strong month for consumer lending, saw a 5% year on year decline, indicating that consumers’ attitudes to borrowing are beginning to change.

The Finance and Leasing Association has revealed consumer lending fell by 6% in 2010 compared to the previous year.  Store card borrowing, a particularly expensive form of borrowing, saw the biggest reduction.

The run up to Christmas, which is traditionally a strong month for consumer lending, saw a 5% year on year decline, indicating that consumers’ attitudes to borrowing are beginning to change.

Martin Saville, Which? Credit expert, said “It's not at all surprising that consumers are paying back credit, rather than applying for new credit cards and loans. With thousands of jobs at risk over the coming year, it makes sense for many families to reduce their exposure to debt”.

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