Credit card spending showed a downward trend in August, with mortgage lending and personal loan applications showing steady growth.
These figures by the Major British Banking Group (MBBG) suggest that Britons are increasingly shying away from credit card debt.
It has been suggested that lower credit card usage resulted in a rise in personal loan lending and more use of overdraft facilities, as banking customers would rather use these than their credit cards.
"After fluctuation in June and July, August saw mortgage lending return to the very stable trend that we have seen throughout this year," commented David Dooks from the British Bankers Association.
"There was a stronger increase in overall consumer credit in August as a result of higher demands for loans and overdrafts," he added.
Credit card debt was down by £0.1 billion – a trend that was predicted after poor retail sales were reported in August.
Data published by the Office of National Statistics also reflected consumer caution, with spending remaining flat last month.
Demand by consumers was described as being weak but stable.
Credit card spending down
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