Experian: UK Consumers Shifting Away From Credit Cards

Global information services company Experian last week released consumer debt data for the United Kingdom. The company said that the data showed consumer debt growth has slowed in the UK in the past year and that credit card balances have dropped slightly.

Dublin, Ireland-based Experian said in a press release that the release was the first of its kind for the company.

Overall, outstanding credit balances in the UK – including mortgages – increased 9.24 percent over the past 12 months to $2.31 trillion. But the growth was principally driven by mortgage lending. Total credit balances had expanded by 14 percent in the previous 12 month period.

Credit card borrowing increased 1.25 percent in the time period, compared to a 10.8 percent increase in mortgage borrowing. While credit card borrowing increased, total balances on unsecured loans – which include credit card loans – actually decreased, according to the report.

“The flat, almost negligible growth in credit card balances suggests that consumers themselves have also taken a more responsible approach to borrowing, looking to lower cost and more affordable credit products or even to cut down on borrowing altogether,” Experian said in the press release.