Thursday 28th of May 2009
The amount of money being lent to consumers has fallen over the last year, figures have confirmed.
According to the Finance and Leasing Association (FLA), new lending for the year ending in March was £58 billion - 13 per cent below the previous 12-month period.
Much of this was influenced by a 67 per cent decline in secured loans, while credit card borrowing dipped by only four per cent.
In the three months up to March, however, credit card lending was shown to have fallen by ten per cent.
This could indicate that consumers are attempting to avoid debt problems, but those who are still struggling may be interested in debt management programmes, which can allow repayments to be made at a more affordable level.
And although they do not apply to secured loans, such debt solutions can enable borrowers to keep on top of these by reducing other outstanding forms of finance.
The FLA recently stated that lenders have been attempting to work with consumers in order to minimise repossessions.
