Borrowing by consumers on credit cards, loans and overdrafts is showing signs of slowing down, according to latest figures.
The figures, released today by trade body UK Finance, showed that the amount of money consumers borrowed grew by 1.5% annually in August 2017, compared to 1.9% in July.
This follows warnings over the past months from the Bank of England about high levels of consumer borrowing. The Bank also warned yesterday that lenders could see losses of £30 billion of consumer debts if the economy took a downturn.
Here’s how the latest figures stack up:
- Credit card lending grew by 5% annually in August 2017, but this is down from 5.3% in July
- Personal loan and overdraft borrowing shrunk by 1.6% in August
- Mortgage borrowing is on the up, increasing by 2.6% in August
- Savings deposits grew just 2.2%, the lowest rate since May 2009
The data covers 21 banks including Barclays, HSBC Group, Lloyds Banking Group, RBS Group and Santander.
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If you’ve existing credit card, loan or overdraft debt, you can cut the cost using our Balance Transfers, Money Transfers, Cut Existing Loan Costs and Cut Overdraft Costs guides.
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