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British consumers repay record amount of debt

BRITISH consumers paid back a record amount of unsecured debt in October according to the Bank of England, which reported yesterday that net consumer credit fell by a record &pound;579m in October.<br /><br />This marked the largest monthly fall since records began in 1993 and was the fourth monthly repayment in a row. City economists had expected consumers to repay &pound;200m. <br /><br />The data showed credit card borrowing was limited to &pound;134m, while there was a record net repayment of &pound;713m on other loans and advances. <br /><br />Howard Archer at IHS Global Insight said: &ldquo;This is clearly the consequence of many consumers&rsquo; desire to reduce their debt, low demand for credit and a lack of availability of unsecured credit from banks.&rdquo;<br /><br />Prior to the crisis, households had built up debt worth &pound;228bn.