Consumer borrowing down as Christmas approaches

By Joel Stanier

Consumers repaid more personal debt than they took on in October, according to the latest lending figures from the Bank of England.

Net lending in consumer credit dropped by £0.5 billion that month, meaning that £0.5 billion more was repaid than borrowed. This included a £0.1 billion net repayment of credit card debt and a £0.3 billion net repayment of 'other loans and advances'.

This is compared with a £1.1 billion increase in net lending the month before - and it may suggest that people are gearing up for the expensive festive period, when borrowing usually rises.

Meanwhile, mortgages and other secured lending increased by £0.2 billion, compared with a six-month average increase of £0.5 billion.

An expert at All About Money said: "It's likely that we'll see an increase in borrowing over the Christmas period, but it's important that people carefully plan how much they can afford to borrow and how they will pay it back.

"It's important that people get help at the first sign of trouble. The new year can be a difficult time financially, and if you think your debt repayments are getting in the way of your ability to pay your bills and other living costs, it's time to get expert advice."

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