Data from the latest report from the Bank of England data shows that the annual growth rate of consumer credit slowed in November 2018, but credit card lending was still 7.9% higher than a year earlier, with other consumer credit lending up by 6.6%.
Commenting on the latest figures, StepChange Debt Charity CEO Phil Andrew said “Consumer credit growth may be relatively modest in percentage terms, but let’s not lose sight of the fact that in cash terms outstanding credit card borrowing still rose by £400 million compared with just a month earlier. In 2018, the Financial Conduct Authority announced a number of welcome measures designed to help address the unsustainable use of credit, including persistent credit card debt. The continuing growth in lending does suggest that vigilance will continue to be necessary to prevent credit becoming problem debt for households.”
The report also shows that the households borrowed £3.5bn against their homes in November, slightly lower than the previous month’s total of £4.1bn. This is in line with the average amount since 2016, £3.6bn per month.
Consumers borrowed an additional £0.9 billion to spend on goods and services in November, in line with the average since July. The annual growth rate of consumer credit slowed further in November, to 7.1%.