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Debt consolidation trend indicated by new report
A debt consolidation loan may help consumers to reduce their level of borrowing, something a new report has suggested many consumers are currently trying to do.
Data from the Finance and Leasing Association (FLA) has revealed the overall level of lending by the body's members dipped by two per cent to £51.2 billion in the year to July 2011.
Store instalment credit saw the biggest drop at 14 per cent and storecards fall 12 per cent, with only car finance and second mortgages increasing in use.
Debt consolidation loans may be part of the borrowing that is taking place, according to FLA head of consumer finance Fiona Hoyle.
She said of consumers: "When they do decide to borrow, they focus on essential expenditure like buying a car, carrying out home improvements and debt consolidation."
Other recent evidence of debt consolidation included British Bankers Association figures for August, which indicated credit card holders paid back nearly £100 million more than they borrowed.
Data from the Finance and Leasing Association (FLA) has revealed the overall level of lending by the body's members dipped by two per cent to £51.2 billion in the year to July 2011.
Store instalment credit saw the biggest drop at 14 per cent and storecards fall 12 per cent, with only car finance and second mortgages increasing in use.
Debt consolidation loans may be part of the borrowing that is taking place, according to FLA head of consumer finance Fiona Hoyle.
She said of consumers: "When they do decide to borrow, they focus on essential expenditure like buying a car, carrying out home improvements and debt consolidation."
Other recent evidence of debt consolidation included British Bankers Association figures for August, which indicated credit card holders paid back nearly £100 million more than they borrowed.
Published: 27/09/2011
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