Data could encourage people to reduce their credit card debt

Britons who have amassed large amounts of credit card debt and want to start the process of getting out of the red may take inspiration from recent fi…

Britons who have amassed large amounts of credit card debt and want to start the process of getting out of the red may take inspiration from recent figures published by the British Bankers’ Association (BBA).

According to the organisation – a trade association for the UK banking and financial services sector that speaks for more than 200 member establishments in 60 countries – growing numbers of people are attempting to clear their outstanding balances on plastic.

The BBA stated that although there were some 173 million purchases charged to cards in August – up from 158 million in 2009 – the amount of debt on the financial products dropped in the same period of time.

Balances dipped by 5.3 per cent to £60.7 billion in August compared to the year before, it revealed.

Commenting on the figures, BBA statistics director David Dooks said: “There has been a rising trend this year in the use of credit cards for spending, with higher transactions volumes seen in August. Reported retail sales are fairly stable, so consumers may be using credit cards for a higher proportion of their spending.”

“They are not, however, borrowing more on their cards to do so, as repayments continue to outstrip new spending and borrowing growth remains subdued,” he added.

And the data may serve as inspiration to those who also want to clear their credit card debt, potentially increasing demand for debt consolidation measures such as individual voluntary arrangements.

By James Francis

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