Debt charities also warned that a slowdown in borrowing is far from a reversal that would reduce the debt burden.

“While the rate of growth may have slowed, the outstanding amount of borrowing taken on by households continues to grow at a rapid pace. We know that millions of people are already using credit just to get by; while wages falling behind inflation risks leaving many more families vulnerable to debt,” said Peter Tutton, head of policy at StepChange Debt Charity.

“With the pile of outstanding credit card debt still growing, the Financial Conduct Authority must ensure that its credit affordability rules are robust enough to ensure that what is designed to be a short-term lending product, does not trap people in long-term, expensive and potentially harmful cycles of debt.”

Meanwhile mortgage lending picked up a touch with homeowners taking out £21.6bn of loans in November, amounting to an extra £3.5bn after repayments.

A total of 133,116 mortgages were approved in the month, the highest number since 2008.

UnsecuredCredit – BingNews