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.
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