Cards & Loans

Consumer borrowing slows following Bank of England warnings

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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What debt help is available?

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.

Alternatively, if you’re struggling to cope with your debt, our Debt Problems guide has a checklist to help you sort your problems, and where to go to get free one-on-one debt counselling, such as from Citizens Advice, CAP, StepChange or National Debtline.

We also have a Debt-Free Wannabe forum board, which is full of inspiring stories and support, and our Mental Health & Debt guide.

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