National incomes slump as recession continues to bite
Households have “no appetite” to take on more debt and demand for loans remains weak amid the uncertain economy, high street lenders said yesterday.
Unsecured borrowing through loans and overdrafts fell by 7.7 per cent in the year to September, while people continued to shore up their savings, the British Bankers’ Association (BBA) said.
The BBA said that the fragile state of the eurozone and uncertainty in the UK economy is having a “dampening” effect on firms and households. However, recent studies have also found that banks have also toughened their borrowing criteria, making it harder for people to take loans out.