Britons ‘continue to pay down their debts’

couple sorting debt

couple sorting debtIf you have been keeping a close eye on your family's spending in recent months in an attempt to scale back your debts, it would seem that you are not alone in embracing frugality.

Research conducted by the British Bankers' Association (BBA) revealed that as a nation we paid off more money on our credit cards than we spent last month - making £7.4 billion in repayments while spending £7.2 billion.

This furthers a recent trend of paying down personal debt, and it's one we should wish to continue, after it emerged that the UK has fallen back into recession with two consecutive quarters of negative GDP growth.

Other lending also declined as mortgage approvals fell back after some recent increases, and £100 million was paid back on personal loans and overdrafts.

Mortgage approvals were subdued due to the end of the two-year stamp duty concession for first-time buyers during the month, according to experts.

The BBA report said: "Demand from consumers for loans and overdrafts remained weak and repayment of this unsecured borrowing continues to outweigh new lending.

"This behaviour has resulted in a constant contraction of borrowing levels over the past three years."

Meanwhile, your chances of being approved for a mortgage might have diminished as a report by the Bank of England revealed that approval rates have fallen as lenders tighten their belts amid the ongoing economic uncertainty.

If you want to pay off your arrears but do not believe you have a strong chance of doing so, this guide on how to get out of debt is definitely worth a read to help get you started.

You can also download this free eBook on how to build a budget and save money. Simply sign up to MyFamilyClub for free to access this and other eBooks packed full of money-saving tips.