The personal finance options available to many members of the public are likely to be reduced in the coming months given the latest data from the Bank of England.

Publishing its quarter one 2008 results today, the Bank states that lenders have reported a restriction in the availability of secured credit to households in recent months.

The tightening in conditions was predicted in the previous quarter and lenders expect it to continue over the next three months.

At the same time, concerns are likely to be mounting in households currently strapped for cash, given that the Bank’s data suggest default rates have risen in the first three months of this year.

Commenting on the figures, chief economist at the Royal Institution of Chartered Surveyors Simon Rubinsohn remarks: "Many will find the availability of finance limited and the cost of borrowing challenging as purse strings tighten in response to economic conditions."

Consumers worried about their debt management abilities might like to investigate individual voluntary arrangement (IVA) as a means of recovering a secure financial footing.