Figures show fall in consumer credit lending
26 September 2011 16:01:35
 |
| Credit card holders are showing caution on the high street. |
The trade association found that lending fell by 1% in July, the latest month for which figures are available.
Credit card and personal loan lending was down by 2% compared with July 2010, while store cards were down by 12%.
Fiona Hoyle, the FLA's head of consumer finance, observed that consumers have become more cautious about spending on the high street.
She said: "When they do decide to borrow, they focus on essential expenditure like buying a car, carrying out home improvements and debt consolidation."
Ms Hoyle also urged the government to be careful when considering new regulations for consumer credit "to avoid shrinking the market further".
The FLA figures follow a recent report from the British Bankers' Association, which also indicated Britons' reluctance to build up high levels of unsecured debt.
Its figures revealed that repayments on credit cards and unsecured loans outstripped new borrowing by £100m in August.
BBA statistics director David Dooks said that borrowing demand had been affected by the weak economic environment, which continued to "undermine confidence in both household and business sectors".
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