Fri 22nd Sep, 2006
All out of love
Moneynet reports that Brits seem to be falling out of love with their credit cards, with borrowing growth on the decline. For the fourth consecutive month, credit card holders paid off more than they borrowed, with repayments totalling £399 million in August. There was a fall of £77 million in July and over the last six months the average monthly fall has been £143 million. Recent figures from the British Bankers Association shows that loans and overdrafts are also down.
Moneyfacts suggest that rising utility bills and mortgage rates are making homeowners tighten their belts. Weaker consumer confidence has also had an effect on these figures. Moneyfacts researcher Samantha Owens commented: ‘Rising interest rates have impacted on mortgage costs, while energy bills have also been rising. This has forced people to review their finances and cut back on the luxuries that they maybe would have put on their credit card.’