17 May 2010
The consumer credit market will return to growth in 2011, but will shrink slightly this year as borrowers focus on paying down debt rather than borrowing more, according to research from Datamonitor.
The business information group said it expects gross lending to increase to £25.8bn next year, but only after a fall to £24bn (from £27bn) this year.
Datamonitor found that 8.6% of disposable income was put towards savings in the three months to September 2009. In the third quarter of last year, consumers saved £19bn more than they did a year earlier.
A debt expert at Think Money said: "The figures show a strong focus on repaying debt and putting money into savings, which can only be a good thing for individuals` finances.
"Whatever the economy`s needs, for the time being people are focusing on their own financial health."
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