The Demand of Personal Loan Borrowing Subdued in June

A rise in inflation not only put the people under stress situation but it also affects the economy of the country. A salaried people could not balance their income and expenditure effectively due to rise in the cost of living which in turn prompts them to borrow money from lenders.

According to a new figure, a rise in cost of living has encouraged a large number of people to prevail the loan amount they borrow through personal and unsecured credit as compared to the last month figures.

The data from British Bankers Association (BBA) shows that, in June borrowing on personal loans, credit cards and overdrafts has increased to £0.3 billion compared to £0.4 billion in the previous month.

Statistics Director at the BBA, Mr. David Dooks revealed that, the borrowing on personal loans was comparatively weak, and that was the reason of the stress or pressure on the household finances.

Angela Knight, the BBA's Chief Executive, said: “These numbers revealed that people want to reduce their debts and are trying to save more but they are under stress because of the higher cost of food and fuel and also, the increased cost of borrowing is the reason behind it.

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