May 26, 2006

By Peter Kenny

Figures released by the British Bankers Association today reveal that although credit card debt rose in April, the increase was in line with previous months.

A total of £6.6 billion was spent using during April and taking into account credit card repayments and seasonal adjustments there was a rise in credit card debt.

Credit card debt for April rose by £67 million, which is exactly in line with the previous rise in March (£67 million)

David Dooks, BBA director of statistics, said, “Though consumer credit increased in line with recent patterns, it followed the previous month's net repayment. Looking at the two months together, it is clear that consumers were showing little appetite to take on additional unsecured borrowing."

The figures seem to show that UK consumers are starting to control their unsecured debt. It was revealed earlier this year that debit cards were becoming more popular due to the fact, that purchases are immediately debited from a debit card holders bank account, thus limiting the ability to run up debt.

The British Bankers' Association (BBA) is the principal trade association for banks operating in the UK. It is a leading representative body in the financial services sector and has 218 members, as well as many associate member, which fund its not-for-profit activities.