Credit card borrowing on the decline

 

CREDIT CARD BORROWING ON THE DECLINE
Article date: 27/09/2005 : 15:31:36

The amount of overall credit card debt fell in August, while lending on loans and overdrafts rose, according to figures released today.

The British Bankers' Association's (BBA) August figures show that net credit card lending fell by £146 million compared to a recent average increase of £102 million.

However net lending on loans and overdrafts increased by £842 million from last month, more than the average of about £500 million for the last six months.

David Dooks, BBA director of statistics, said: "Within consumer credit, cards are generally not being used to increase debt. Card spending was offset by repayments in August, so that net lending continued to be subdued.

"Structured personal loans and overdrafts were stronger than of late and there may well be some switching between different forms of borrowing."

The figures also illustrate while the amount of new borrowing on credit cards increased by 13 per cent from last month to £8.1 million, new repayments increased as well.
 
 
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