Latest Debt News
Better borrowing bubble bursts
02/03/2006 16:31:00
Credit card borrowing over the last year has seen the biggest rise in the UK's history, according to the latest official figures.
The Bank of England (BoE) has reported that borrowing on cards increased by £733 million in January.
Overall net lending across Britain rose by £10.5 billion, the majority of which is secured on consumers' homes.
The news comes at a time when unsecured lending had been decreasing over the last one and a half years.
Mark Thomas, an analyst at Keefe, Bruyette & Woods, told the Times that this rise in bad debt was "perfectly manageable".
Meanwhile, Vicky Redwood of Capital Economics told the newspaper that unsecured debts could see even further increases if the housing market continued to see further growth.
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