This is a very large reduction, equal to about 8 per cent of average household income. The majority of households have chosen not to spend the money that has been freed up. Rather, they have maintained high repayments and are therefore moving ahead of schedule in repaying their loans.
This will give them breathing space if they do subsequently find themselves in circumstances where their repayments are interrupted. Conclusion Let me sum up by saying that the past six months have been a very difficult time for the world economy.