Demand for borrowing down over-all

Posted 2007-10-6

Director of Statistics David Dooks has announced, “Despite reports of stronger retail sales, card spending was low in September.” And although seasonal adjustments have shown a slight increase in borrowing, he added, “over-all demand for unsecured borrowing remains very weak.”

The British Bankers’ Association (BBA) supports the findings and has opinionated that the number of Britons seeking unsecured loans has continued to fall.

New data, from the beginning of 2007 through September, has also shown that the reduced amount of credit card expenditures is ongoing, with credit card usage down by 3%.

When pressures mounted through the increases in the base rate of interest, Alliance & Leicester found that households were 50% more likely to deal with their debt.

Secured loans may offer a higher level of financial security for households with suitable equity in the form of property. However, the number of loans approved dropped by 7%, and consumers seeking secured loans for equity withdrawal fell by 14%.

While there were fewer equity release applications and approvals made over the past year, the BBA asserts that individuals may be hoping to obtain a greater level of funds from their loan.

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