January 4, 2006
New debt increasing at ten year low
The amount of new debt taken on by UK consumers has fallen to its lowest level for ten years, new figures from the Bank of England reveal.
The growth rate of consumer credit fell to just 9.8 per cent a year in November, the slowest growth recorded since September 1994.
Growth in consumer credit, which includes borrowing on credit cards and personal loans, reached its peak in 2002 when it hit 16.1 per cent.
Net lending to individuals in November totalled £9.6 billion. This was £0.7 billion higher than in October and £0.8 billion higher than the previous six month average
Debt in the UK now stands at £1,148 billion. The figure notably breached the £1 trillion barrier in 2004, prompting comment that Britons were borrowing too much.
Of that amount 83 per cent is in the form of mortgages.
