Concern over late payment charges and the possibility of an interest rate rise have prompted people to be more savvy about paying back their credit card debts, with levels dropping for the third month out of four.
The total amount of money owed on plastic by the end of June was £245 million less than the amount recorded at the end of May, the BBA said.
Encouragingly, debt taken on through loans and overdrafts also fell during June.
Howard Archer, chief UK economist at the Global Insight consultancy, commented: “Consumers are keen to find less expensive ways of financing their spending.
“Record high debt levels, rising unemployment and increasing pension concerns means that there is an increased need for many consumers to try and improve their finances.”