Consumer debt slowing down according to new figures

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Consumer debt slowing down according to new figures

LONDON, UK - After a mad spree of getting into debt, British consumers now seem to be calming down, as figures for December reveal that unsecured lending rose at its slowest rate for three years.

The figures from the Bank of England show that borrowing through credit cards, overdrafts and loans increased by just £834 million last month, well down on November's £1.44 billion leap.

Particularly weak was the increase in credit card lending rising by just £135 million, compared to November when it rose by £475 million.

Chief economist at stockbroker Gerrard, Simon Rubinsohn, told The Telegraph: "For some reason people paid back a lot more debt in December."

He believed this was due to a possible reaction to November's interest rate rise and further rumours that the rates may rise again early this year.

Another area that was particularly weak was mortgage lending, rising by £7.28 billion, the lowest since March.

Analysts claim the figures will have little impact on the Bank of England's decision to raise interest rates again, when its Monetary Policy Committee meets next week.

It is widely expected that interest rates will be raised from the current 3.75 per cent by the MPC, after previously expressing concerns over levels of consumer debt.

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