COLM KEENA Public Affairs Correspondent

IRISH PEOPLE are significantly reducing their personal debt by paying down items such as credit card bills, mortgages and other loans, according to the latest figures from the Central Bank.

For the first time in almost 20 years the annual growth rate in the value of outstanding mortgages has fallen. This is partly due to the introduction of stricter lending criteria being applied by banks. It means that people who wish to buy a home are finding it more difficult to get mortgage approval.

The value of all outstanding mortgages at the end of the month was €147.7 billion, with the annual rate of change in mortgage lending turning negative for the first time since the statistics series began in 1990.

Outstanding indebtedness on personal credit cards fell marginally on a year-on-year basis, ending 0.6 per cent lower at the end of November 2009, compared with a year earlier.

The fall in private sector credit in November follows a fall of €2.3 billion that occurred during October. Total private sector credit at the end of November was €373.7 billion.

Separately, an indicator of the Irish economy’s competitiveness versus others in the euro area rose marginally during November.

However, year-on-year the indicator points towards a loss in competitiveness.

Consumers making determined efforts to pay down debt - The Irish Times - Thu, Dec 31, 2009