Consumers save rather than spend | moneyfacts.co.uk

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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Tim Leonard

Tim Leonard

Finance Expert
Published: 24/09/2009

People are choosing to build up their savings and reduce the amount they borrow, as the economic downturn continues to influence their thinking.

Latest figures from the British Bankers' Association (BBA) have revealed individuals continued to bolster their financial position during August, with spending on credit cards falling lower and personal deposits increasing strongly.

Demand for personal loans has also weakened considerably, particularly since the turn of the year.

Speaking to Moneyfacts.co.uk, Richard Davies, senior manager at Lloyds TSB Savings, said: "Given the economic uncertainty around us, regular saving has never been more important. Attitudes have started to shift and people increasingly want the security of having a nest egg in place as a financial safety net."

Meanwhile, prospective homebuyers have received a welcome boost after it was revealed the number of mortgage loans approved for house purchase by the main high street banks has grown by 81% since August last year.

The amount of loans approved and their average value has been rising steadily during the last seven months.

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