Consumers are repaying their debts at a record rate, according to the latest data from the Bank of England.
Figures released yesterday show that the level of consumer credit fell by £579 million in October – the biggest fall since records began in April 1993.
After a decade of easy credit and rising personal debt, Britons are now choosing to repay their debts rather than accumulate new ones - but economists warn that the slowdown in spending will not help the economy. ….
Alan Adam a financial consultant from Alan Steel Asset Management, said: "We are definitely saying to people they should get their house in order – you have got to be in control of your own finances.
"Interest rates are lower than they have ever been but people are being increasingly prudent – which is not what the Government were hoping would happen." ....
Quote courtesy of The Scotsman, 1 December 2009.
