UK credit card debt falls as consumer spending falls

• UK consumers have made net repayments on their credit cards for the first time in almost seven years, as households across the country rein spending in and rebuild their finances after a boom in borrowing.
• The Bank of England reported the first monthly fall in credit card debts since July 2013, after borrowers repaid around £100m in November to reflect fading demand for consumer credit.
• The annual growth rate in unsecured consumer lending dropped to 5.7% from 6.1% in October, as households limited their spending on credit cards and cut back on finance deals to purchase a new car.
• Mirroring a slowdown in consumer spending over recent months, the total amount borrowed in November dipped to £600m, marking the weakest monthly growth in borrowing in six years, and sliding below a £1.1bn monthly average since July 2018.

Source: Bank of England

 

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