UK Loans to Consumers Fall in Q3

A recent report released by Finance and Leasing Association (FLA) suggests that loans to UK consumers fell in the third quarter of 2010 across the board.

Consumer credit fell by 6%, whereas credit card loans and personal loans were down by 8% and 5% accordingly. Store card spending fell by as much as 22%. As for second-charge mortgages, they declined by 11%.

Commenting on the figures, Ms. Hoyle, head of consumer finance at Finance and Leasing Association, said that "the new figures show that consumers continue to take a cautious approach to spending, with a decline in the amount of credit granted almost across the board." She, however, highlighted that the overall amount of lending to UK consumers in Q3 amounted to £12.5 billion, which is sufficient enough.

Let us remind that a report published earlier by Moneyfacts suggests that consumer credit will increase in December as Brits are expected to turn to credit cards to finance their Christmas purchases.