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Consumers shun high street debt

Nicky Burridge
Wednesday 26 January 2011 01:00 GMT
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Consumers continued to avoid borrowing to fund high street spending during November, but there was a big jump in demand for personal loans, according to the Finance & Leasing Association's latest figures.

Lending through store cards dived by 25 per cent during the month, compared with a year ago, with just £202m advanced. There was also an 11 per cent fall in borrowing through store instalment credit.

However, borrowing through personal loans jumped 34 per cent during the month. Overall,the FLA said total advances by its members during November were unchanged on a year earlier at £4.38bn. Credit card lending was flat year-on-year, although at £2.71bn it remained the single largest area of advances.

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