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Consumers are increasingly paying off their credit cards, with February 2006 marking the first month that average outstanding credit card balances have been below the £3,000 level since August 2004.
Average outstanding credit card balances have been falling for 10 months and are below £3,000 for the first time in 19 months, according to Moneyextra.com.
According to the Bank of England’s latest figures, overall credit card lending increased by £0.7 billion in January compared with a revised £0.2 billion increase in December.
Moneyextra.com’s Robin Amlôt commented: "It’s clear that what we’re seeing is a
two-tier credit card market. Card deals are less attractive than they were this
time last year.
"Many people are finding their 0% borrowing deals coming to an end and they’re
opting to pay off debt."
Outstanding card balances have been falling since in April 2005 and are down by
more than a thousand pounds (£1,006 or 28.5%) from a peak of £3,527 in that
month.
Source:
Credit Control Journal
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