Consumer credit flows 'rise by £0.5bn'
By myfinances.co.uk staff
The total net flow of consumer credit through unsecured personal loans, credit cards and overdrafts moved higher in January, although the market is expected to remain "subdued" in the months ahead.
According to the Bank of England's Trends in Lending report, net consumer credit lending rose by £0.5 billion in January.
This was up from a net increase of £0.3 billion in December and a net decline of £0.4 billion in November.
Within January's total, net credit card lending remained broadly flat, while unsecured lending through overdrafts and personal loans increased, the Bank noted.
UK lenders forecast that demand for consumer credit is likely to remain subdued in the months ahead as customers are still focused on reducing their debt levels.
Applications for personal loans and credit cards for February were below both the levels seen a year earlier and the monthly average recorded in 2009, the report said.
According to Moneyfacts, average credit card rates hit a 12-year high of 18.8 per cent in February.
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