Card borrowing rises as economy signals recovery
By UK CreditCards.com
Published: 1 July 2009
The apparently improving economy has made more people willing to use their credit cards, a report suggests.
According to financial website Unbiased.co.uk, people borrowed an average 19p for every £1 they saved over the first three months of 2009. This represents a shift in spending habits from late 2008, where £1.76 was paid back on balances for credit cards and loans for each £1 saved.
Unbiased.co.uk said that the change could reflect increasing hopes that the economy has turned a corner from its recent sharp downturn.
The global credit crunch has led to a contraction in output for many of the world's largest economies. However, over recent months stock markets have rallied by around 20% as several indicators suggested "green shoots" of recovery.
David Elms, chief executive of Unbiased.co.uk, said: "After the relentless financial gloom of last year, the public mood seems to be changing with financial forecasters spouting optimism over Britain's economic prospects.
"It is vital for consumers to continue nurturing their financial position."
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