The latest figures from the Finance & Leasing Association (FLA) have revealed that its members provided 17% less new consumer credit in the second quarter of the year (compared with the same period in 2008), moneyfacts.co.uk reports.
Both secured and unsecured lending markets had contracted, falling 84% and 43% respectively. Despite being down on an annual basis, however, store cards remained popular in the second three-month period of the year, with new business reporting a 5% rise in June.
A spokesperson for debt management company Gregory Pennington commented: "Although it is encouraging to see consumers taking on less debt, it is still important that when people do decide to borrow, they are aware of the small print.
"Understanding the difference between different types of debt is crucial before committing to any of them - and anyone who feels forced to take on any kind of debt should contact a professional debt adviser before doing so."
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