Debt falling for first time since early '90s

clock

Consumer debt is falling for the first time since the early 1990s, according to Alliance & Leicester's borrowing monitor.

The firm’s latest figures for consumer borrowing – borrowing other than for the family mortgage - suggests consumer debt is growing at its slowest rate for the last 13 years. The figures reveal borrowing has slowed to just 1.4% a year, compared to the 11.7% it averaged over the last 10 years. It is also growing more slowly than earnings, which are currently growing at 4.2% a year, and more slowly than inflation, which is running at 3.6% according the Retail Prices Index (RPI) or 2.4% using the newer Consumer Prices Index. Credit card borrowing fell every month between February and ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

FCA to deliver 'fewer and faster' enforcement outcomes this year

FCA to deliver 'fewer and faster' enforcement outcomes this year

Therese Chambers says the watchdog is prosecuting more people than ever before

Sahar Nazir
clock 23 October 2025 • 2 min read
Autumn Budget 2025: Majority of Brits concerned about rumoured pension tax-free tax changes

Autumn Budget 2025: Majority of Brits concerned about rumoured pension tax-free tax changes

The updates advisers need in the run up to the Autumn Budget 2025 on 26 November

Professional Adviser
clock 23 October 2025 • 1 min read
Reeves' rumoured ISA reforms risk 'harm' and diversification issues

Reeves' rumoured ISA reforms risk 'harm' and diversification issues

Concerns over rumoured £10k cash ISA cap and potential UK equity mandate

Sahar Nazir
clock 22 October 2025 • 5 min read