Credit card repayments exceeded new borrowing by £118 million in April, according to BBC News Online.

But although credit card lending showed a sharp decline, lending through loans and overdrafts increased over the same period.

The slow retreat from credit card usage may be a sign that UK consumers are tightening their purse strings. Some evidence shows consumers are using their savings rather than borrowing.

“A cautious approach to credit card debt in the current climate is no bad thing,” says William Hunter, director at Hunter Wealth Management.

“Many households have a fair amount of debt already and so a move away from credit card debt is far more sensible than ‘maxing out.’”

Credit card borrowing has decreased in four of the last six months.

BBC News Online is the most popular news website in the UK, receiving about 14 million unique visitors each week. Read the original article here.

• Bio
• Latest Posts

Poundy

Old-fashioned in nature but sophisticated in thinking, Poundy is happy to offer his words of wisdom to anybody interested in Pounds to Pocket — behind the shapely moustache lies an abundance of knowledge.

Latest posts by Poundy (see all)

• Renters’ Savings Too Scant to Buy a Home, Says the Telegraph - April 25, 2013
• Take the Spending Quiz and Win a Free Grocery Tote! - April 15, 2013
• Infographic: How to Save £1 Billion a Year Staying Down to Earth - April 12, 2013
• Infographic: Be Smart and Save Money with your Smartphone - April 10, 2013
• Infographic: What Kind of Spender are You? - April 2, 2013

Comments