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07 November 2006
Evidence is continuing to emerge that Britain is starting to reduce its tendency to build up debt as the consequences hit home in higher IVA and insolvency statistics.
New figures from the Alliance & Leicester today have shown a fall in the growth of debt in all areas except mortgages.
Borrowing growth currently stands at an annual rate of 1.4 per cent, compared with the 11.7 per cent annual trend of the last decade.
Credit card balances fell by £2.7 billion since January this year.
Speaking about the trend, Alliance & Leicester's managing director of retail banking, Chris Rhodes, said: "2006 has been a turning point for the UK consumer; people are now seeing their unsecured borrowing fall relative to their earnings."
However, the shifting trend has come too late for some, with the Citizens Advice Bureau reporting today that it dealt with 11 per cent more cases of bad debt than a year ago, while last week the government's insolvency service reported a 55.4 per cent annual rise in insolvencies.
If you're worried about debt and want to know where you stand financially order your credit report today.
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