Credit card spending down, says BBA

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Credit card spending down, says BBA

Fri 19th Jan 2007

Spending on the plastic decreased during 2006 for the first time in 14 years with credit card expenditure lowering by £1.8 billion on the previous year.

The figures were released by the British Bankers' Association (BBA) and showed that consumers were increasingly looking toward mortgage lending – this sector displaying a rise of £5.8 billion in 2006.

Other findings discovered that both unsecured personal lending, loans and overdrafts were all up last year on the previous annum.

David Dooks, BBA director of statistics, said: "2006 was notable for contrasting trends in secured and unsecured personal lending."

He added: "Whilst mortgage demand remained robust, despite the housing market experiencing 7 per cent annual price inflation and an expectation of rising interest rates throughout the second half of the year, the appetite for consumer credit clearly waned, as reflected by the significant contraction in credit card borrowing."

Meanwhile, research carried out by the Council of Mortgage Lenders found mortgage lending to have decreased by ten per cent during last December but this is still 8.8 per cent above the corresponding month in 2005.

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