Net credit card lending still rising


Credit card balances on the riseThe Bank of England unveiled credit card lending figures for May 2009. According to the institution, consumer credit increased by a net £300m over the month, in line with the six-month average.

This means that £300m more was taken out, in credit cards, unsecured loans and other advances, than was paid back. Included in this total was £200m growth in net credit card lending.

However, the effects of the credit crunch, which has led to widespread constrictions in high street credit, were revealed in annual growth rate data. Overall consumer credit was found to have risen by 2.3% over the 12 months to May 2009.

This is well down on April's 2.8% and is the lowest monthly rate measured so far this year. In turn, this suggests that banks are maintaining a tight grip on their credit criteria, leading to more conservative lending than before.

Elsewhere, the Bank of England said that there was currently £232.7bn of outstanding consumer credit left to be paid back at the end of May.ADNFCR-2308-ID-19240684-ADNFCR

Published: 2 July 2009