Consumer Payment Card News

British Credit Card Lending Continues Downward Spiral in 2018

British credit card lending noses down a tad more. According to the latest consumer credit statistics released this morning by the Bank of England (BOE), annual consumer credit growth slowed to 6.6% in December, reflecting the continuation of relatively weak flows of new lending. The net monthly flow in December fell to £0.7 billion, reflecting less extra borrowing on credit cards.

U.K. Credit Card Lending

Analysis by RAM Research reveals credit card lending growth (seasonally adjusted) has been slowing eroding throughout 2018, from 9.4% YOY in January to 7.1% YOY for December.

The extra amount borrowed by consumers to buy goods and services fell to £0.7 billion in December. Within this, credit card borrowing was particularly weak at only £0.1 billion, compared to an average of £0.3 billion since July.

Overall U.K.Consumer Credit

The overall consumer credit monthly flow was slightly below the £0.9 billion monthly average (seasonally adjusted) since July, and significantly below the average between January 2016 and June 2018 of £1.5 billion. A comparison with December 2017, using non-seasonally adjusted data, shows that the recent decline in net consumer credit reflects an increase in repayments more than offsetting higher gross borrowing by households, according to CardData

According to new and revised data credit card lending settled at £72.2 billion for a 7.1% YOY gain in December, compared to £72.4 billion for a 7.9% YOY in November, and compared to £70.2 billion for an 8.9% YOY for December 2017.

U.S. Revolving Consumer Credit

Meanwhile, U.S. consumer credit card debt (revolving) for November, mostly credit card debt (95%), remained above the $1 trillion level for the ninth consecutive quarter. The year-on-year (YOY) change edged slightly upward in November. Consumer revolving credit increased at an annual growth rate of 5.5% in November. and an annual rate of 10.9% growth in October, compared to a revised 0.0% annual rate in September.

U.K. Credit Card Loans

Dec 2017: £70.2 billion +8.9%
Jan 2018: £70.2 billion +9.4%
Feb 2018: £70.8 billion +9.6%
Mar 2018: £70.7 billion +8.9%
Apr 2018: £71.2 billion +8.8%
May 2018: £71.6 billion +9.3%
Jun 2018: £72.0 billion +9.4%
Jul 2018: £72.0 billion +8.9%
Aug 2018: £72.5 billion +8.9%
Sept 2018: £72.3 billion +8.6%
Oct 2018: £72.3 billion +8.3%
Nov 2018: £72.4 billion +7.9%
Dec 2018: £72.2 billion +7.1%

Historical Data for U.K Credit Card Loans

U.K. Other Loans/Advances

Dec 2017: £136.9 billion + 9.9%
Jan 2018: £137.2 billion 9.3%
Feb 2018: £138.5 billion + 9.3%
Mar 2018: £138.7 billion + 9.3%
Apr 2018: £139.6 billion + 8.8%
May 2018: £140.3 billion + 8.5%
Jun 2018: £141.0 billion + 8.5%
Jul 2018: £141.5 billion + 8.2%
Aug 2018: £142.2 billion + 7.7%
Sept 2018: £142.8 billion + 7.5%
Oct 2018: £142.7 billion +7.0%
Nov 2018: £143.1 billion +6.8%
Dec 2018: £14.4 billion +6.4%

Historical Data for U.K Other Loans/Advances

U.K. Total Consumer Credit

U.K. Total Consumer Credit

Dec 2017: £207.1 billion + 9.5%
Jan 2018: £207.5 billion + 9.3%
Feb 2018: £209.3 billion + 9.4%
Mar 2018: £209.5 billion + 8.6%
Apr 2018: £210.3 billion + 8.8%
May 2018: £211.9 billion + 8.8%
Jun 2018: £213.0 billion + 8.8%
Jul 2018: £213.5 billion + 8.5%
Aug 2018: £214.6 billion + 8.1%
Sept 2018: £215.0 billion + 7.9%
Oct 2018: £215.0 billion +7.4%
Nov 2018: £215.4 billion +7.2%
Dec 2018: £215.6 billion +6.6%

Historical Data for U.K Total Consumer Credit

Source: Bank of England; RAM Research; CardData

New and Revised figures as of 01/30/19

Note: Lending to individuals is split between lending secured on dwellings (mortgages) and consumer credit. Consumer credit is further split between credit card debt and other loans and advances. Student loans are excluded.