Figures from the British Bankers’ Association (BBA) indicated today (October 23rd) that people are trying to pay down their debts.
According to the September 2009 data, overall consumer credit outstanding – including money owed on personal loans and credit cards – dropped by a total of £300 million.
Repayments on credit card bills also hit £6.1 billion, while new spending on the cards was at £5.6 billion.
This chimes with recent figures from Key Retirement Solutions, which showed that 36 per cent of customers who took out plans over the third quarter of the year wished to use the money to pay down their debts.
Meanwhile, the BBA data also showed that mortgage loan approvals rose by 77 per cent year-on-year.
This signals a new strength in the property market – further good news for those who want to unlock equity from their homes by taking out an equity release plans.
BBA statistics director David Dooks said: "Mortgage lending by the high street banks is continuing to improve from the lows seen earlier this year and the number of house purchase approvals continues to recover.
"Housing market activity will depend, however, on more properties coming on to the market."
Posted by David Hancock
