Debt falling for first time since early '90s

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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 ...

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