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Full repayment of card debts rising

12 October 2006
According to figures released by the Bank of England, the proportion of credit card users making credit card repayments has risen to 95.3 per cent - its highest level since 1998.

Similar figures from UK payments association APACS show that card holders are beginning to get the message over maintaining debts on their plastic, with 2005 figures showing a three per cent rise in those repaying their full balance each month (from 56 per cent in 2004 to 59 per cent).

Spending levels continue to rise, although the latest round of statistics suggests that consumers are becoming more aware of the cost of interest and how it affects their borrowing habits.

"Our figures show that UK credit cardholders are reining in their spending and concentrating on repayments - a trend which has continued throughout this year," observed Sandra Quinn, director of communications at APACS.

"In fact the latest figures released by the Bank of England in September 2006 show credit card repayments overtaking spending for the first time.

"Nervousness about economic growth could well have contributed to the reduction in credit card spending and higher repayments, alongside media speculation about whether consumers are borrowing responsibly."

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