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Card spending slows during downturn
Thursday 6th November 2008In the current economic climate, the government is adamant that the way to escape the recession is to spend, spend, spend; but it would seem that regular Joe Public don’t agree. Shopaholics are opting to save rather than spend in the face of the credit crunch, choosing to leave their flexible friends at home.
According to data from the Bank of England, last month’s rate of £300 million in unsecured borrowing, was the lowest it’s been for nearly 15 years.
The average monthly borrowing rate usually averages out around £1 billion.
With unemployment levels rising, and uncertainty rife in many financial futures, consumers are being forced to curb their excessive spending and make more of an effort to live within their means. The increase in credit levels may also be due to the fact that lenders are playing safe by withdrawing credit and loan offers when necessary.
So while the government spend our taxes and British national debt grows, the good news is, at least our credit card statements are shrinking.
By Danielle Williams
dani@medianett.co.uk
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