British consumers look likely to start reigning in their spending over the coming weeks and months, according to one expert.
Howard Archer, chief UK and European economist at Global Insight, has suggested that lending criteria is already being tightened and that many borrowers are aiming to reduce their debt management problems as much as possible.
“Rising debt levels, low savings rates, recent higher interest rates and falling equity prices mean that there is an increasing need for many consumers to improve their finances,” said Mr Archer.
“An increasing propensity to save seems likely to significantly dampen consumer spending over the coming months,” he added.
Mr Archer’s comments came in response to the latest data release from the British Bankers Association that showed consumer borrowing to have been “relatively muted” since the so-called credit crunch.
Figures compiled on behalf of the Your Money Matters exhibition recently suggested that the average at which a Briton becomes debt free is 50.