Debt diminishing slowly, data shows

Fri, 20 Jan 2006

It seems as if British consumers are trying to steer clear of taking out personal loans and adding more debt to their credit cards, new Bank of England figures suggest.

In November last year, applications for credit cards and personal loans fell to 9.8 per cent, which was the slowest recorded rate in 14 months.

National Debtline reported record numbers of calls from people with adverse credit problems.

The helpline, set up by the government to offer help to those experiencing adverse credit problems, received 12,000 calls between Christmas and the first week of January.

This record figure marks the busiest time for the helpline since it first opened in 1987.

Greater public knowledge about available help for those struggling with adverse credit problems could be behind this surge in calls, says Richard Gale of National Debtline.

He believes this increased awareness is more likely to have boosted calls than higher levels of debt.

PricewaterhouseCoopers reported last year that personal debt in the UK topped one trillion pounds for the first time.

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