Lending on credit cards down as consumers pay off debts

New figures from the Bank of England show that in April this year, borrowing on credit cards contracted by the highest monthly amount since August 2006.   Card repayments outstripped new borrowing by £118 million as consumers paid back debts

However, borrowing continued to rise via loans and overdrafts, increasing by £1.4bn.  This was in line with the previous six months, according to the new report.

Separately, there is some evidence that people are using their savings instead of borrowing.

New figures from the Bank of England show that in April this year, borrowing on credit cards contracted by the highest monthly amount since August 2006.   Card repayments outstripped new borrowing by £118 million as consumers paid back debts

However, borrowing continued to rise via loans and overdrafts, increasing by £1.4bn.  This was in line with the previous six months, according to the new report.

Separately, there is some evidence that people are using their savings instead of borrowing.

Monthly figures released by the Building Societies Association for April show that withdrawals from accounts in mutual societies outstripped new saving for the fifth month running.  However, this contraction of £463m was about half of the level seen in March.

For the full Bank of England report, see:  http://www.bankofengland.co.uk/publications/Documents/other/monetary/TrendsJanuary12.pdf

For more information on the Building Societies Association report, see http://www.bsa.org.uk/mediacentre/press/monthlystats_april12.htm