Lending decreases via credit cards

24/04/2007

During March total credit card lending to UK consumers decreased.

The British Banker’s Association (BBA) feels that consumer credit card spending decreased by £117 million in March .

In February credit card spending rose by £3 million, summing up the difference this has decreased by £169 million every month for the last half a year.

Overdrafts and Personal loans decreased in March. Accordingly, the decrease of £47 million was much more less than February’s exclusion of £236 million.

The British Banker Association sums concluded that mortgage lending could be slowing down and the report revealed that growing consumer awareness that interest rates are soon to increase again could be the reason why credit card holders are not spending as much.

David Dooks, the BBA director commented, "Higher mortgage costs for households are no doubt a factor in the subdued demand for unsecured borrowing."