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UK 'not returning to spendthrift days'

By Sarah Engle, Thu 4 Feb 2010 - Published in Credit Cards

The recent increase in lending does not show that the UK is returning to the days of easy credit, an expert has claimed.

Recent figures from the Bank of England showed the sum borrowed on loans, credit cards and overdrafts during December was higher than the amount being paid back.

This is the first time this has occurred since June last year, but lovemoney.com's head of consumer finance Ed Bowsher said that Britain is not heading back to pre-credit crunch conditions.

He commented: "The whole economic crisis was a huge shock for us and I think people don't want to make the same mistakes twice."

Mr Bowsher explained that the rise in borrowing on products such as credit cards is a reflection of the slight increase in consumer confidence and claimed that people are still attempting to save as much as money as they can.

The Bank's Lending to Individuals report revealed that consumer credit rose by £100 million in December.