Consumers facing up to debt problems as a result of recession
Consumers facing up to debt problems as a result of recession
- Thursday, 28 January 2010Borrowers have been "shocked into action" and are now committing to
debt management as a result of the recession, according to one expert.
Head of research at MoneyExpert.com Pierre Williams said that job worries resulting from the economic downturn have resulted in people looking to rapidly pay off their debts.
"Lenders were also shocked into action too - they cut back on the number of people they were willing to give money to and that has contributed to the debt crisis not being as bad as feared," he said.
Mr Williams said people should not expect to see cheap credit in the market "any time soon", with lenders remaining cautious with their offerings until the economy shows solid signs of improvement.
According to the Bank of England's latest Trends in Lending report, availability of consumer credit was reported by lenders to have tightened further.
Consumer credit demand is also expected to remain subdued, despite falling expectations for unemployment.

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