People in the UK are still trying t reduce their debts even when the stores along the High Street are offering massive discounts to lure shoppers into spending more money, according to a report presented by the British Bankers’ Association (BBA).
Retail sales were up during November however there were only a few requests for loans and overdrafts, according to the BBA. There was an increase in credit card borrowing due to the interest from existing debts. Mortgage approvals were also down, according to the BBA report.
The statistics director of the BBA Mr. David Cooks said, “Until there are clear signs of improvement in the economy and stability on the international front, households and businesses lack the confidence needed to seek credit for spending or investment. Stocks of bank lending therefore continue to be driven down, as repayments dominate over the absence of any material rise in borrowing demand.”
There was also a decrease in the number of house purchases for the month of November from 35,196 to 34,738. The final number of house purchases was way over the 29,875 deals made in the same period last year.
Consumer credit was down by £200 million for the month of November and the saved money by the consumers was up by £2.1 billion to £645.3 billion.
The worth of lending to small to medium sized business went down by £0.7 billion due to increased reliance on cash flow to keep their business operations running from day to day.
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