New Bank of England data released today shows there was a net rise in consumer credit of £0.9 billion in October, with net credit card borrowing accounting for £0.4 billion of this.
Commenting on the latest data, StepChange Debt Charity Head of Policy Peter Tutton said: “Although the flow of credit card borrowing may be slowing down, it’s important to recognise that the amount still owed on credit cards remains extremely high. Some £72 billion of credit card debt remained outstanding in October – up from around £69 billion just a year ago.
“While it may be true that some people are making greater use of cards for transaction rather than for borrowing, there is still a massive backlog of rolling card debt, with some three million people potentially subject to the Financial Conduct Authority’s new interventions to address persistent credit card debt.
“The high cost of credit may not be immediately obvious within some kinds of products, which are often held by people experiencing problem debt. Credit cards and overdrafts can be examples of this, and we urge the FCA to remain focused in addressing them.”