Consumers have `wait and see` attitude towards finances

The BBA (British Bankers` Association) has said that British consumers are adopting a `wait and see` attitude towards their finances, as demand for loans and other credit remained subdued, the BBC reports.

BBA statistics director, David Dooks, said that individuals and businesses were making an effort to save more, pay down debt and borrow less "as uncertainty about the economy has entrenched a wait and see attitude".

Demand for mortgages was weak during the month and consumers focused on repaying personal loans (with repayments outstripping new borrowing by £181m).

A spokesperson at Gregory Pennington commented: "It`s encouraging to see people making a concerted effort to clear their debts.

"We would advise anyone in a position to do so to make overpayments towards their debts while interest rates are historically low. That way, depending on the type of credit they`re repaying, they may be able to save a great deal of money in interest in the long run."