The appetite for credit remains subdued as the majority of consumers continue to take a highly cautious and prudent approach to their finances. Consumer confidence remains fragile as the UK economy officially re-entered recession during Q1 2012, and ongoing fears about the future of the eurozone are doing little to improve sentiment. Against this backdrop, most consumers are unwilling to increase their exposure to debt, while a significant proportion have taken steps to reduce the amount that they owe.

However, despite the challenging conditions, consumers appear to be weathering the financial storm reasonably well. The proportion of consumers struggling with their finances has not increased, and there are signs that fewer people are failing to meet their financial commitments.

This report provides insight into the relationship between consumers and credit. It examines credit ownership in terms of the products used and the level of outstanding debt held. Attitudes towards credit and borrowing are considered, in terms of both personal debts and also from a wider perspective. The concept of responsible lending is also considered, offering some insight into the way in which consumers perceive lenders of different types of credit.