Credit on the up as everyone starts spending
For the first time in 4 years, everyone is once again merrily getting into credit card debt, according to the British Bankers Association. The amount of people putting things on the never never rose, with a 6.7% rise in card borrowing, and a 5.1% increase in overdrafts and personal loans.
Home loans are also on the up, with mortgage approvals hitting a 4 year high. Net consumer credit grew by £100m to £80.1bn – most of which was from credit cards – showing a significant rise in consumer spending.
So have we learned nothing from the recession? Well, we’re becoming a bit more prudent about paying off debt, rather than splurging millions on gold plated handbags then breaking down in tears on the Wonga man. Net mortgage lending was zero in August, with borrowers paying off as much as the banks doled out. And we’ve paid off £200m of mortgage debt every month. Which surely means we deserve to stick the odd mini-break in the Lake District on our Visas.
David Dooks, the statistics director of BBA said: ‘The figures suggest that consumer confidence is growing.’
So come on, get out your Mastercards and live a little. Who wants to go to Mauritius on a YACHT?