There has been a change in attitudes towards borrowing since the onset of the economic downturn, it has been stated.
Low interest rates have prompted people to work towards becoming debt free, according to Vicky Redwood from Capital Economics.
“The low level of savings rates is an incentive for people to use their money to pay off any debts they have,” she explained.
Ms Redwood noted that people have realised they cannot “refinance” by borrowing money as easily as in pre-credit crunch days, while the fall in values for assets such as property has also had an effect.
However, it is “unrealistic” to expect that the change in attitudes will last forever, she said, suggesting that consumers may begin borrowing high amounts again in the future.
In related news, the recent JGFR Financial Activity Survey showed that 29 per cent of UK adults intend to pay off debts in the coming six months.
By Jamie Price