UK consumers have made net repayments on their credit cards for the first time in almost seven years, as households across the country rein spending in and rebuild their finances after a boom in borrowing. The Bank of England reported the first monthly fall in credit card debts since July 2013, after borrowers repaid around £100m in November to reflect fading demand for consumer credit. The annual growth rate in unsecured consumer lending dropped to 5.7% from 6.1% in October, as households limited their spending on credit cards and cut back on finance deals to purchase a new car. Mirroring a slowdown in consumer spending over recent months, the total amount borrowed in November dipped to £600m, marking the weakest monthly growth in borrowing in six years, and sliding below a £1.1bn monthly average since July 2018. Concerns have been growing about the strength of the UK economy at the end of last year amid a slowdown in consumer spending before the election and as households braced themselves for Brexit. High-street sales slumped in November to mark the weakest period for sales for more than a year, which experts said would be reflected in the weaker growth in consumer borrowing…. Read full this story
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