May 31, 2006

By Peter Kenny

A Bank Of England report released today reveals that credit card debt for April reached £363 million, up from £118 million in March.

The lower spending in March also showed the dramatic rise in net consumer credit, which was £813 million, a rise of £481 million over the 10-year record, low spending month of March.

A previous Government report showed that spending had reduced to 0.2 per cent from 0.7 per cent in the previous 3 months.

Figures also show that mortgage approvals fell to a seven-month low, a drop that many analysts reckon show that the UK property market may be cooling. After the interest rate cut last August, house prices have risen almost every month, it is thought that the boom the property market received after the last rate cut may just be starting to wear off.

These figures seem to show that consumers are now controlling their spending and are unwilling to add to their existing debts.