Credit card spending declines, balances rise
By UK CreditCards.com
Spending on credit cards declined from July to August, according to new data from the British Bankers' Association (BBA).
The number of purchases made on cards last month dropped from 91m to 87m and the amount spent by cardholders also declined by £200m to reach £5.6bn. Compared with August 2008's totals, transaction volumes were down by 9.4% and spending dropped by 13.6%.
Meanwhile, balances registered a collective net increase of £200m in August, due to interest accruing on money already owed.
David Dooks, the BBA's statistics director, said that the credit crunch and recession had contributed to the changing spending patterns. Over recent months, many households have been looking to budget more stringently due to the crisis.
"In reaction to the economic conditions, consumers appear to be building up their savings and controlling their appetite for unsecured borrowing," he commented.
The BBA also released figures today on other forms of credit provision from banks. Gross mortgage lending was found to have reached £8.6bn last month, an increase of £100m from July. Meanwhile, personal loan lending held steady at £1.3bn.
Published: 24 September 2009
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