Consumers with unsecured debt like personal loans are growing more confident in the state of their finances, the Lloyds Bank Lending Report has found.

More than four in five (83%) felt confident or very confident in meeting loan repayments in the second quarter.

The number of people who missed one payment in the last 12 months also fell from 13% in the first quarter to 11% in the second.

Sam Clark, head of loans at Lloyds Bank, said: “We are starting to see encouraging signs as more people can better manage their loan repayments. In addition, there has been an increasing shift in those saying that they will not need to take out more debt in the future.

“Overall, the results paint a positive picture and the upward move in consumer confidence will help a lot more people feel more in control of their finances.”