CONSUMER borrowing is set to plummet this month with Britons intending to borrow an average of £29, almost half the amount borrowed per person in July this year (£56), according to findings from Alliance & Leicester's Wealth Tracker Index.

At a time when interest rates and the cost of borrowing have fallen, the findings suggest Britons are living within their means, fearful of becoming burdened by debt if interest rates rise in a recession. The Index findings also reveal that people have more cash than in July, with the average monthly disposable income per person rising by 15 per cent, (average disposable income per person was £287 in July, compared with £333 in November).

Furthermore, the findings show Britons continue to save and invest similar proportions of their monthly disposable income despite the difficult market conditions and reveal a widening gap between the financial health of men and women.