Spending on credit cards is stable as mortgage lending drops

26/09/2008

New figures have been released on credit card spending in the UK. Figures published by the BBA, the British Bankers’ Association show that credit card spending as been steady in August with figures at around £7.3 billion.

The total amount of outstanding debt on credit cards went up by around £400 million; however credit card users paid back £7.4 billion in the month, including charges and interest.

Despite increases in rates and good deals harder to come by, credit card users appear to be resorting to use of their cards to deal with the increasing cost of living and to pay for all sorts of expenses.

During the month figures on gross unsecured loans remained stable and the amount borrowed on overdrafts went down slightly.

The figures on the number of mortgages in the UK being approved however show a different picture. Figures for new mortgages being approved and remortgaging figures have fallen in recent months. Remortgaging figures are at their lowest since 2001.