27 May 2010
According to figures from the British Bankers` Association, mortgage approvals remained relatively unchanged in April, as households concentrated on paying off debts, the BBC reports.
The figures, according to the BBC, `point to a trend of consumers trying to live within their means` - with borrowers repaying more debt than they were taking on.
The amount of debt taken on (net consumer lending) contracted by £0.3bn in April - as repayments to loans and overdrafts outstripped new lending by £507m.
Statistical Director for the BBA, David Dooks, said: "Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings, even in the main ISA [Individual Savings Account] season."
A debt expert for Think Money commented: "It is encouraging to see borrowers repaying more debt than they are taking on.
"However, in the current economic climate, some people may still struggle with their debt repayments. We would advise anyone in this situation to seek professional debt advice as soon as possible."
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