Consumers lose appetite for credit cards
The monthly increase in credit card lending was negligible in June, the first time that the monthly figure has hardly moved since 1994.
The change in credit card use is largely thought to be a result of increasing credit card interest rates, as providers have largely scrapped zero per cent transfer offers, combined with scare stories in the press about personal debt.
According to the Bank of England, which revealed the figures yesterday (Monday), there was “hardly any growth” in credit card lending.
It rose by around £43 million in June to £212 billion, compared with a rise of £200 million in May.
The rate of growth of all consumer credit, both secured and unsecured, continued to fall, to 7.3 per cent from 7.9 per cent.