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BBA figures show borrowing is falling


01/02/2006 16:40:00

Signs are starting to show that Brits are finally taking on board the debt message as levels of borrowing in December fell.

Lending figures from the British Bankers' Association show that consumers are demonstrating financial restraint, Reuters reports.

In the six months leading up to December, the average amount of lending from personal loans and overdrafts stood at £2.99 billion, but this fell in the final month of the year to £2.5 billion.

BBA director of statistics, David Dooks, told Reuters: "People are getting a lot more cautious about taking on borrowing and I can't see what would release those reins.

"Whilst there will be a bit of a comeback in January, I wouldn't expect to see it as high as previous years."

December figures also indicated that borrowing levels were lower than previous years as more people realise the dangers of taking on too much debt.

track© Adfero Ltd

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