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The growth rate of consumer debt in the UK has fallen to just 9.8% a year: reports the Bank of England.
This is the slowest growth recorded in 11 years. This means that UK residents have finally learnt to tame their hunger for spending.
This slowdown in growth rate is mainly attributed to a drop in credit card spending which was £3 billion lower in November than in October. Also, people have considerably changed the way they used to shop. Debit cards have outrun credit cards in the race for the most preferred type of plastic card used by UK shoppers.
Another reason cited for this downtrend is the strong reactions that the 2004 report evoked among the UK residents. In the year 2004, it was reported that the national debt for UK had touched one trillion pounds, prompting the UK borrowers to analyse their borrowing sprees. A fear that they will not be able to pay back their debt prompted this recent slowdown of consumer appetite for debt. |
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