Credit card borrowing recovers due to more attractive deals
A record proportion of credit card borrowing incurred no interest in November.
Of total credit card borrowing, 43 per cent is interest-free, figures released yesterday by the British Bankers’ Association (BBA) revealed.
The number of card purchases in November was six per cent higher than the same month in 2013.
There were 216m purchases made with credit cards in November, with a total value of £12bn. The total amount of borrowings outstanding is up 5.5 per cent annually and now stands at £59.6bn – the highest level for four years.
“Consumer spending looks well set for a strong year,” said Richard Woolhouse, the BBA’s chief economist.
“Attractive financial deals are even more appealing when you feel more optimistic about your economic future. With unemployment continuing to fall, many of us seem to believe 2015 will be a year where we can spend with greater confidence – that’s good news for the wider economy.”