According to Alliance & Leicester, borrowing has slowed to 1.4 per cent a year, compared to the ten-year average of 11.7 per cent and even credit card debt has fallen.
Chris Rhodes, managing director of Alliance & Leicester retail banking, said: “People are now seeing their unsecured borrowing fall relative to their earnings. We have not seen consumer borrowing this subdued since the recession of the early 1990s.”
However, while credit card debt has fallen, UK debt levels still stand near £1.3 trillion.
While it appears that many are taking advice on becoming debt free, there are still others who could benefit from such information.
Mr Rhodes added that people still need to service existing debts as well as decline to take on new ones: “We are also seeing a cultural shift. People seem less willing to pay back their debts than in the past.”